Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document and entity information [abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Trading Symbol | ERJ |
Entity Registrant Name | EMBRAER S.A. |
Entity Central Index Key | 0001355444 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 735,482,105 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
CURRENT | |||
Cash and cash equivalents | $ 1,280.9 | $ 1,270.8 | $ 1,241.5 |
Financial investments | 1,743.4 | 2,366.1 | 1,775.6 |
Trade accounts receivable, net | 318 | 297 | 336.8 |
Derivative financial instruments | 5.4 | 29.5 | 21 |
Customer and commercial financing | 1.2 | 2.1 | 8.5 |
Collateralized accounts receivable | 218.5 | 185.6 | 142.8 |
Contract assets | 358 | 447.5 | 370.6 |
Inventories | 2,507 | 2,148.7 | 2,496.4 |
Guarantee deposits | 339.9 | 0.1 | |
Income tax and social contribution | 95.3 | 76.9 | 80.7 |
Other assets | 203.4 | 255.3 | 349.7 |
Total current assets | 7,071 | 7,079.6 | 6,823.6 |
NON-CURRENT | |||
Financial investments | 183.5 | 251.2 | 173.1 |
Derivative financial instruments | 4.1 | 4.8 | 11.1 |
Customer and commercial financing | 10.5 | 14.3 | 28.9 |
Collateralized accounts receivable | 17.4 | 103.1 | 180.5 |
Guarantee deposits | 9.8 | 393.8 | 511.4 |
Deferred income tax and social contribution | 21.6 | 13.4 | 11.6 |
Other assets | 105.6 | 121.5 | 156.9 |
Non-current assets excluding investments,property, plant and equipment and intangible assets | 352.5 | 902.1 | 1,073.5 |
Investments | 6.3 | 5.6 | 3.9 |
Property, plant and equipment, net | 1,964.7 | 2,104.9 | 2,154.2 |
Intangible assets, net | 1,898.8 | 1,882.4 | 1,664.6 |
Total non-current assets | 4,222.3 | 4,895 | 4,896.2 |
Assets | 11,293.3 | 11,974.6 | 1,719.8 |
CURRENT | |||
Trade accounts payable | 892.1 | 824.7 | 952.1 |
Loans and financing | 179.3 | 388.9 | 510.3 |
Recourse and non-recourse debt | 324 | 17.6 | 22.9 |
Other payables | 288.4 | 292.2 | 379.5 |
Contract liabilities | 1,045.4 | 1,001.1 | 1,086.8 |
Derivative financial instruments | 8.1 | 8.8 | 8.4 |
Taxes and payroll charges payable | 68.4 | 70.7 | 43.6 |
Income tax and social contribution | 48 | 16.1 | 25.9 |
Financial guarantee and residual value | 51 | 22.2 | 49.7 |
Dividends payable | 5 | 36.8 | 24.8 |
Unearned income | 2 | ||
Provision | 116.9 | 124.1 | 123.8 |
Total Current Liabilities | 3,028.6 | 2,803.2 | 3,227.8 |
NON-CURRENT | |||
Loans and financing | 3,468.4 | 3,809.6 | 3,249.6 |
Recourse and non-recourse debt | 17.4 | 346.5 | 351 |
Other payables | 28.6 | 21.5 | 16.9 |
Contract liabilities | 198.2 | 125.5 | 158 |
Derivative financial instruments | 0.1 | ||
Taxes and payroll charges payable | 58.2 | 70.2 | 67.9 |
Deferred income tax and social contribution | 254 | 258 | 265.2 |
Financial guarantee and residual value guarantees | 101.1 | 134.6 | 161.1 |
Unearned income | 73.2 | 91.7 | 106.9 |
Provision | 125.5 | 136.2 | 179 |
Total non-current liabilities | 4,324.6 | 4,993.9 | 4,555.6 |
TOTAL LIABILITIES | 7,353.2 | 7,797.1 | 7,783.4 |
SHAREHOLDERS' EQUITY | |||
Capital | 1,551.6 | 1,438 | 1,438 |
Treasury shares | (31.4) | (51.8) | (49.1) |
Revenue reserves | 2,433.7 | 2,743.2 | 2,566.1 |
Share-based remuneration | 37.4 | 37.3 | 36.8 |
Accumulated other comprehensive loss | (145.6) | (107.7) | (135.7) |
Retained earning | 5.1 | (12.1) | |
Shareholder's equity excluding non-controlling interest | 3,845.7 | 4,064.1 | 3,844 |
Non-controlling interests | 94.4 | 113.4 | 92.4 |
TOTAL SHAREHOLDERS' EQUITY | 3,940.1 | 4,177.5 | 3,936.4 |
TOTAL LIABILITIES | $ 11,293.3 | $ 11,974.6 | $ 11,719.8 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Profit or loss [abstract] | ||
REVENUE | $ 5,859.4 | $ 6,203.9 |
Cost of sales and services | (4,764.1) | (4,982) |
GROSS PROFIT | 1,095.3 | 1,221.9 |
Operating Income (expense) | ||
Administrative | (179.1) | (164.3) |
Selling | (315.9) | (353.4) |
Research | (49.2) | (47.6) |
Other operating income (expense), net | (210.4) | (442.6) |
Equity in income (losses) of associates | 1.2 | (0.3) |
OPERATING PROFIT BEFORE FINANCIAL INCOME | 341.9 | 213.7 |
Financial income (expense), net | (40.6) | (37.5) |
Foreign exchange gain (loss) , net | 6.6 | 4.4 |
PROFIT (LOSS) BEFORE TAXES ON INCOME | 307.9 | 180.6 |
Income tax expense | (27.9) | (0.3) |
NET INCOME (LOSS) FOR THE PERIOD | 280 | 180.3 |
Atributable to : | ||
Owners of Embraer | 264 | 178.6 |
Non-controlling interests | $ 16 | $ 1.7 |
Earnings per share-basic in US$ | $ 0.36 | $ 0.24 |
Earnings per share-diluted in US$ | $ 0.36 | $ 0.24 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Statement of comprehensive income [abstract] | ||||
Net income (loss) for the period | $ (171.2) | $ 280 | $ 180.3 | |
ITEMS THAT WILL NOT BE RECLASSIFIED FOR THE STATEMENT OF INCOME | ||||
Actuarial gain (loss) on post-employment benefit obligation | 1.1 | 9.2 | (7.6) | |
ITEMS THAT MAY BE SUBSEQUENTLY RECLASSIFIED THROUGH PROFIT AND LOSS | ||||
Financial instruments, net | 0.4 | (10.3) | 11 | |
Translation adjustments | (65.4) | 34.1 | (0.8) | |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX EFFECTS | [1] | (63.9) | 33 | 2.6 |
Total comprehensive income | (235.1) | 313 | 182.9 | |
Attributable to: | ||||
Owners of Embraer | (216.1) | 292 | 192.4 | |
Non-controlling interests | (19) | 21 | (9.5) | |
TOTAL OF COMPREHENSIVE INCOME | $ (235.1) | $ 313 | $ 182.9 | |
[1] | Items presented above are net of deferred income tax, if applicable, of US$ (2.8), US$ (3.8) and US$ 5.1 for the year ended December 31, 2018, 2017 and 2016, respectivelly. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of comprehensive income [abstract] | |||
Net of deferred income tax | $ (2.8) | $ (3.8) | $ 5.1 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Capital [member] | Treasury shares [member] | Share-based remuneration [member] | Government grants [member] | Legal Reserve [member] | Additional proposed dividends [member] | For investment and working capital [member] | Retained earnings [member] | Result in transaction with non-controlling interest [member] | Actuarial gain (loss) on post employment benefit obligation [member] | Cumulative translation adjustments [member] | Accumulated Other Comprehensive Loss Financial Instruments [member] | Total shareholders equity [member] | Non-controlling interest [member] |
Beginning balance (Previously stated [member]) at Dec. 31, 2015 | $ 3,843.7 | $ 1,438 | $ (38.4) | $ 35.4 | $ 41.6 | $ 183.4 | $ 6.6 | $ 2,224.7 | $ (4.2) | $ (41.9) | $ (102.8) | $ (0.6) | $ 3,741.8 | $ 101.9 | |
Beginning balance (Increase (decrease) due to changes in accounting policy [member]) at Dec. 31, 2015 | (24.6) | $ (24.6) | (24.6) | ||||||||||||
Beginning balance at Dec. 31, 2015 | 3,819.1 | 1,438 | (38.4) | 35.4 | 41.6 | 183.4 | 6.6 | 2,224.7 | (24.6) | (4.2) | (41.9) | (102.8) | (0.6) | 3,717.2 | 101.9 |
Statement [LineItems] | |||||||||||||||
Net income for the year | Previously stated [member] | 167.7 | ||||||||||||||
Net income for the year | 180.3 | 178.6 | 178.6 | 1.7 | |||||||||||
Actuarial loss on post employment benefit obligation | (7.6) | (7.6) | (7.6) | ||||||||||||
Translation adjustments | (0.8) | 10.4 | 10.4 | (11.2) | |||||||||||
Financial instruments | 11 | 11 | 11 | ||||||||||||
Total comprehensive income | 182.9 | 178.6 | (7.6) | 10.4 | 11 | 192.4 | (9.5) | ||||||||
Share-based remuneration | 1.4 | 1.4 | 1.4 | ||||||||||||
Stock options grants exercised | 1.7 | 6.4 | (4.7) | 1.7 | |||||||||||
Acquisition of own shares | (17.1) | (17.1) | (17.1) | ||||||||||||
Allocation of profits: | |||||||||||||||
Dividends from 2015 approved in 2016 | (6.6) | $ (6.6) | (6.6) | ||||||||||||
Investment in subsidy | 1 | (1) | |||||||||||||
Legal reserve | 9 | (9) | |||||||||||||
Interest on own capital | (22) | (22) | (22) | ||||||||||||
Dividends | (23) | (23) | (23) | ||||||||||||
Reserve for investments and working capital | 106.4 | (106.4) | |||||||||||||
Ending balance (Previously stated [member]) at Dec. 31, 2016 | 3,941.2 | ||||||||||||||
Ending balance at Dec. 31, 2016 | 3,936.4 | 1,438 | (49.1) | 36.8 | 42.6 | 192.4 | 2,331.1 | (12.1) | (4.2) | (49.5) | (92.4) | 10.4 | 3,844 | 92.4 | |
Statement [LineItems] | |||||||||||||||
Net income for the year | Previously stated [member] | 262.8 | ||||||||||||||
Net income for the year | 280 | 264 | 264 | 16 | |||||||||||
Actuarial loss on post employment benefit obligation | 9.2 | 9.2 | 9.2 | ||||||||||||
Translation adjustments | 34.1 | 29.1 | 29.1 | 5 | |||||||||||
Financial instruments | (10.3) | (10.3) | (10.3) | ||||||||||||
Total comprehensive income | 313 | 264 | 9.2 | 29.1 | (10.3) | 292 | 21 | ||||||||
Share-based remuneration | 0.5 | 0.5 | 0.5 | ||||||||||||
Stock options grants exercised | 5.9 | 12.3 | (6.4) | 5.9 | |||||||||||
Acquisition of own shares | (15) | (15) | (15) | ||||||||||||
Allocation of profits: | |||||||||||||||
Government grants | 4.3 | (4.3) | |||||||||||||
Legal reserve | 12 | (12) | |||||||||||||
Interest on own capital | (47.3) | (47.3) | (47.3) | ||||||||||||
Dividends | (16) | (16) | (16) | ||||||||||||
Reserve for investments and working capital | 160.8 | (160.8) | |||||||||||||
Ending balance (Previously stated [member]) at Dec. 31, 2017 | 4,182 | ||||||||||||||
Ending balance at Dec. 31, 2017 | 4,177.5 | 1,438 | (51.8) | 37.3 | 46.9 | 204.4 | 2,491.9 | 5.1 | (4.2) | (40.3) | (63.3) | 0.1 | 4,064.1 | 113.4 | |
Statement [LineItems] | |||||||||||||||
Net income for the year | (171.2) | (178.2) | (178.2) | 7 | |||||||||||
Actuarial loss on post employment benefit obligation | 1.1 | 1.1 | 1.1 | ||||||||||||
Translation adjustments | (65.4) | (39.4) | (39.4) | (26) | |||||||||||
Financial instruments | 0.4 | 0.4 | 0.4 | ||||||||||||
Total comprehensive income | (235.1) | (178.2) | 1.1 | (39.4) | 0.4 | (216.1) | (19) | ||||||||
Share-based remuneration | 0.1 | 0.1 | 0.1 | ||||||||||||
Stock options grants exercised | 9.5 | 20.4 | (10.9) | 9.5 | |||||||||||
Allocation of profits: | |||||||||||||||
Government grants | 0.1 | (0.1) | |||||||||||||
Interest on own capital | (8.2) | (8.2) | (8.2) | ||||||||||||
Dividends | (3.7) | (3.7) | (3.7) | ||||||||||||
Increase in share capital | 113.6 | (113.6) | |||||||||||||
Reserve for investments and working capital | (184.1) | 184.1 | |||||||||||||
Ending balance at Dec. 31, 2018 | $ 3,940.1 | $ 1,551.6 | $ (31.4) | $ 37.4 | $ 47 | $ 204.4 | $ 2,182.3 | $ 0 | $ (4.2) | $ (39.2) | $ (102.7) | $ 0.5 | $ 3,845.7 | $ 94.4 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OPERATING ACTIVITIES | |||
Net income (loss) for the period | $ (171.2) | $ 280 | $ 180.3 |
ADJUSTMENT TO NET INCOME FOR ITEMS NOT AFFECTING CASH | |||
Depreciation | 159.2 | 196.5 | 194.5 |
Realization of government grants | (3.6) | (3.3) | (3.1) |
Amortization | 112.8 | 146.2 | 173.9 |
Realization of contribution from suppliers | (22) | (27.3) | (38.3) |
Loss (reversal) for inventory obsolescence | 18.3 | 11.7 | (23.9) |
Adjustment to market value, inventory, property plant and equipment and intangible | 99.5 | 110.2 | 82.8 |
Allowance for doubtful accounts | (7.8) | 8.1 | 3.5 |
Losses on fixed assets disposal | 19.8 | 18.6 | 19.6 |
Deferred income tax and social contribution | (21.2) | (12.9) | (137.5) |
Accrued interest | (6.4) | (29) | (13.1) |
Interest on marketable securities, net | (33.6) | (23.6) | (52.5) |
Equity in associates gains and losses | 0.4 | (1.2) | 0.3 |
Share-based remuneration | 0.1 | 0.5 | 1.4 |
Foreign exchange gain (loss), net | 20.7 | 6 | (12.6) |
Mark to market of the residual value guarantees | 16.5 | (13.3) | 27.5 |
Provision for penalties | 58.6 | ||
Provision for voluntary redundancy scheme | 6.4 | 28.2 | |
Other | (7.2) | (4.3) | (0.8) |
CHANGES IN ASSETS | |||
Financial investments | 790.8 | (244.6) | (307.7) |
Derivative financial instruments | 23.9 | (1.7) | (21.6) |
Collateralized accounts receivable and accounts receivable | (16) | 4.6 | 140.7 |
Contract assets | 104.1 | (76.9) | 17.1 |
Customer and commercial financing | 4.6 | 21 | 18.8 |
Inventories | (281.9) | 404.9 | (136.9) |
Other assets | 43.5 | 249.4 | 103.7 |
CHANGES IN LIABILITIES | |||
Trade accounts payable | 70.1 | (127.3) | (93.8) |
Non-recourse and recourse debt | (22.6) | (9.9) | (10.9) |
Other payables | (16.3) | (36.6) | (23) |
Contribution from suppliers | 125.5 | 86 | 123.9 |
Contract liabilities | 101.2 | (99.9) | (110.5) |
Taxes and payroll charges payable | 30.7 | 21.1 | (153.1) |
Financial guarantees | (21.2) | (40.7) | (87.7) |
Other provisions | 9.8 | (53.9) | 45.1 |
Unearned income | (12.9) | (11.8) | 0.5 |
NET CASH GENERATED (USED) BY OPERATING ACTIVITIES | 1,107.6 | 753 | (6.6) |
INVESTING ACTIVITIES | |||
Acquisition of property, plant and equipment | (154.3) | (237.7) | (392.5) |
Proceeds from sale of property, plant and equipment | 0.3 | 19.1 | 2.9 |
Additions to intangible assets | (290.3) | (470.5) | (505) |
Additions investments in subsidiaries and affiliates | (2.4) | (0.6) | (2.6) |
Investments measured at amortized cost | (76.5) | (404) | (88.2) |
Loans granted to jointly controlled entity | (12.3) | ||
Dividends received | 0.1 | 0.1 | 0.1 |
Restricted cash reserved for construction of assets | 1 | 4.1 | |
NET CASH USED IN INVESTING ACTIVITIES | (523.1) | (1,092.6) | (993.5) |
FINANCING ACTIVITIES | |||
Proceeds from borrowings | 124 | 972.9 | 576.2 |
Repayment of borrowings | (596.3) | (540.2) | (523.7) |
Dividends and interest on own capital | (40.6) | (54.1) | (28.2) |
Proceeds from stock options exercised | 9.5 | 5.9 | 1.7 |
Acquisition of own shares | (15) | (17.1) | |
NET CASH GENERATED (USED) BY FINANCING ACTIVITIES | (503.4) | 369.5 | 8.9 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 81.1 | 29.9 | (991.2) |
Effects of exchange rate changes on cash and cash equivalents | (71) | (0.6) | 67.2 |
Cash and cash equivalents at the beginning of the period | 1,270.8 | 1,241.5 | 2,165.5 |
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | $ 1,280.9 | $ 1,270.8 | $ 1,241.5 |
Operations
Operations | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Operations | 1. Operations Embraer S.A. (“Embraer” or “the Company”) is a publicly-held company incorporated under the laws of the Federative Republic of Brazil (“Brazil”) with headquarters in São José dos Campos, State of São Paulo. The corporate purpose of the Company is: (i) To design, build and market aircraft and aerospace materials and related accessories, components and equipment, according to the highest standards of technology and quality; (ii) To perform and carry out technical activities related to the manufacturing and servicing of aerospace materials; (iii) To contribute to the training of technical personnel as necessary for the aerospace industry; (iv) To engage in and provide services for other technological, manufacturing and business activities in connection with the aerospace industry; (v) To design, build and trade in equipment, materials, systems, software, accessories and components for the defense, security and power industries, and to promote and carry out technical activities related to the manufacturing and servicing thereof, in accordance with the highest technological and quality standards; and (vi) To conduct other technological, manufacturing, trading and services activities related to the defense, security and power industries. The Company’s shares [B3: EMBR3, NYSE: ERJ] are listed in the enhanced corporate governance segment of the Stock Exchange in Brazil (“B3”), known as the New Market (“Novo Mercado”). Embraer S.A. also holds American Depositary Shares (evidenced by American Depositary Receipts—ADRs) which are registered with the Securities and Exchange Commission (“SEC”) and listed on the New York Stock Exchange (“NYSE”). The explanatory notes to subsequent events contain clarifications on Embraer and The Boeing Company (NYSE: BA) strategic partnership. The terms approved define the creation of a joint venture involving Embraer’s commercial aviation assets and associated services, in which Boeing will hold an 80% ownership stake and Embraer the remaining 20%, as well as the creation of a joint venture to promote and develop new markets and applications for the multi-mission aircraft KC-390, Additional information about the transaction is disclosed in Notes 3.6 and 38.1. These consolidated financial statements were approved by the Company’s Board of Directors on March 12, 2019. |
Presentation of the Financial S
Presentation of the Financial Statements and Accounting Practices | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Presentation of the Financial Statements and Accounting Practices | 2. Presentation of the Financial Statements and Accounting Practices 2.1 Presentation and preparation of the financial statements The consolidated financial statements have been prepared in conformity with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) which include (i) IFRS, (ii) the International Accounting Standard (“IAS”), and (iii) the International Financial Reporting Interpretations Committee (“IFRIC”) or its predecessor, the Standing Interpretations Committee (“SIC”). All informations presented in the consolidated financial statements are those considered relevant in the context of Company’s activities and for management purposes. 2.1.1 Basis of preparation These consolidated financial statements have been prepared under the historical cost convention, except when the account requires different criteria, and adjusted for assets and liabilities measured as at fair value in subsequent measurement, when applicable. The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management of the Company to exercise judgment in the process of applying the Company’s accounting policies. These consolidated financial statements include accounting estimates for certain assets, liabilities and other transactions. The areas which involve high degree of judgments or complexities, or assumptions and significant estimates to the consolidated financial statements, are disclosed in Note 3. 2.1.2 Consolidation The consolidated financial statements include the balances of the December 31, 2018 financial statements of the Company and all subsidiaries directly or indirectly controlled by Embraer, special purpose entities (SPEs) controlled by the Company, as well as corporate venture capital investment funds (FIP), which is an associate accounted for by the equity method. The Company recognizes the assets, liabilities, revenues and expenses of jointly controlled entities in proportion to its shares in the joint operation. All accounts and balances arising from transactions between consolidated entities are eliminated. a) Subsidiaries Subsidiaries are entities (including Special Purpose Entities—SPEs) over which the Company has control. The terms controlled entity and subsidiary are synonymous. The Company may have control through a 100% interest in an investee, or less than that, in which case there will also be non-controlling The accounting policies of the subsidiaries are consistent with the policies adopted by the Company. b) Consortia A consortium is a legal entity set up to meet a specific purpose and is subject to mandatory accounting controls under specific regulations. The Company’s subsidiaries that participate in a consortium account for the consortium transactions in relation to its interests in the consortium. This has reflects in the consolidated financial statements. 2.1.3 Corporate structure Below are informations regarding the Company’s consolidated subsidiaries and joint operations: Entity Participation Country Core activities ELEB – Equipamentos Ltda. 100% Brazil Sale of hydraulic and mechanical equipment for the aviation industry Embraer Aircraft Holding Inc. 100% EUA Concentrates corporate activities in the USA Embraer Aircraft Customer Services, Inc. 100% EUA Sale of spare parts and support services in North America and the Caribbean Embraer Aircraft Maintenance Services Inc. 100% EUA Maintenance of aircraft and components Embraer Business Innovation Center, Inc. 100% EUA Develops technological innovation research in aviation and related areas Embraer Executive Jet Services, LLC 100% EUA After sale support and aircraft maintenance Embraer Executive Aircraft, Inc. 100% EUA Final assembly and delivery of executive jets Embraer Engineering & Technology Center USA, Inc. 100% EUA Engineering services related to aircraft research and development Embraer Aero Seating Technologies, LLC 100% EUA Production and maintenance of aircraft seats Embraer Defense and Security Inc. 100% EUA Supply of Super Tucano aircraft to the American Air Force (LAS) Embraer CAE Training Services LLC 51% EUA Pilot, mechanic and crew training Embraer Aviation Europe - EAE 100% France Concentrates corporate activities abroad, specifically Europe Embraer Aviation International - EAI 100% France Sale of parts and after sale services in Europe, Africa and the Middle East Embraer Europe SARL 100% France Commercial representation of the Company in Europe, Africa and the Middle East Embraer Defesa & Segurança Participações S.A. 100% Brazil Coordinates investments in the Defense & Security segments Atech - Negócios em Tecnologias S.A. 100% Brazil Development and control, communications, computer and intelligence services Visiona Tecnologia Espacial S.A. 51% Brazil Supply of the Brazilian Government’s Geostationary Defense and Strategic Communications Satellite System (SGDC) Visiona Internacional B.V. 100% Holanda Integration and supply of the Brazilian Government’s (SGDC) System . SAVIS Tecnologia e Sistemas S.A. 100% Brazil Operates in Defense and Security with the Brazilian Government Embraer GPX Ltda 100% Brazil Aircraft maintenance services Embraer Netherlands Finance B.V. 100% Holland Financial operations raising and investing funds of the Embraer Group Embraer Netherlands B.V. 100% Holland Concentrates corporate activities abroad Embraer Asia Pacific PTE. Ltd. 100% Singapore After sale services and support in Asia Airholding SGPS S.A. 100% Portugal Coordinates investments in subsidiaries in Portugal OGMA - Indústria Aeronáutica de Portugal S.A. 65% Portugal Aviation maintenance and production Embraer CAE Training Services (UK) Limited 51% United Kingdom No operations Embraer Portugal S.A. 100% Portugal Coordinates investments and economic activities in subsidiaries in Portugal Embraer - Portugal Estruturas Metálicas S.A 100% Portugal Fabrication of steel parts and products for the aviation industry Embraer - Portugal Estruturas em Compósitos S.A. 100% Portugal Fabrication of composite parts and products for the aviation industry Embraer (China) Aircraft Technical Services Co. Ltd. 100% China Sales and maintenance for after sales support in China EZ Air Interior Limited 50% Ireland Fabrication of interiors for commercial aircraft Embraer Overseas Ltd. 100% Cayman Islands Financial operations raising and investing funds of the Embraer Group Embraer Spain Holding Co. SL 100% Spain Concentrates corporate activities abroad ECC Investment Switzerland AG 100% Switzerland Coordinates investments in subsidiaries abroad ECC Insurance & Financial Company Limited. 100% Cayman Islands Covers financial guarantees offered in aircraft sale structuring Embraer Finance Ltd. 100% Cayman Islands Support to the Company in structuring specific operations Embraer Merco S.A. 100% Uruguay No operations -in Specific purpose entities (SPEs) Tepro Consortium Equity investment fund (FIP) Desenvolve SP Embraer Ventures Equity Investment Fund 2.2 Summary of significant accounting policies We present below the significant accounting policies adopted in the preparation of these consolidated financial statements. Description of the significant accounting policies adopted by the Company contributes towards the correct interpretation of the consolidated financial statements, whether on account of the existence of more than one treatment option under the international accounting standards, or due to the complexity of the operation. This set of annual consolidated financial statements includes the first year of adoption of standards IFRS 9 - Financial Instruments and IFRS 15 - Revenue from Contracts with Customers, and interpretation IFRIC 22 – Foreign currency transactions and advance considerations. Changes in the significant accounting policies applied as a result of this adoption are described in the following topic. 2.2.1 Changes in accounting policies - adoption of IFRS 9, IFRS 15 and IFRIC 22 As a result of the full retrospective adoption of accounting standards IFRS 9 and IFRS 15 and changes in the Company’s accounting policies, the consolidated financial statements for the prior year were restated. The following tables present the impacts of the adoption adjustments for each item from the consolidated financial statements. Items that were not affected and restated by the changes were not included. As a result, the reported subtotals and totals cannot be recalculated from the numbers provided. The adjustments are explained in more detail in the topics below: Consolidated Statements of Financial Position As of December 31, 2017 Published IFRS 15 IFRS 9 Restated Financial investments 2,365.6 — 0.5 2,366.1 Trade accounts receivables, net 717.2 (432.8 ) 12.6 297.0 Contract assets — 447.5 — 447.5 Other current assets 3,969.0 — — 3,969.0 Total Current Assets 7,051.8 14.7 13.1 7,079.6 Financial investments 251.3 — (0.1 ) 251.2 Deferred income tax and social contribution 2.9 13.0 (2.5 ) 13.4 Investments 5.6 — — 5.6 Other non-current 4,624.8 — — 4,624.8 Total Non-Current 4,884.6 13.0 (2.6 ) 4,895.0 TOTAL ASSETS 11,936.4 27.7 10.5 11,974.6 Contract liabilities — 1,001.1 — 1,001.1 Advances from customers 799.2 (799.2 ) — — Provisions 141.4 (17.3 ) — 124.1 Unearned income 164.1 (164.1 ) — — Other current liabilities 1,678.0 — — 1,678.0 Total Current Liabilities 2,782.7 20.5 — 2,803.2 Contract liabilities — 125.5 — 125.5 Advances from customers 104.1 (104.1 ) — — Deferred income tax and social contribution 251.4 4.6 2.0 258.0 Unearned income 97.5 (5.8 ) — 91.7 Other non-current 4,518.7 — — 4,518.7 Total Non-Current 4,971.7 20.2 2.0 4,993.9 Equity 4,182.0 (13.0 ) 8.5 4,177.5 TOTAL LIABILITIES 11,936.4 27.7 10.5 11,974.6 As of December 31, 2016 Published IFRS 15 IFRS 9 Restated Financial investments 1,775.5 — 0.1 1,775.6 Trade accounts receivables, net 665.3 (345.1 ) 16.6 336.8 Contract assets — 370.6 — 370.6 Other current assets 4,340.6 — — 4,340.6 Total Current Assets 6,781.4 25.5 16.7 6,823.6 Financial investments 168.3 — 4.8 173.1 Deferred income tax and social contribution 3.6 10.7 (2.7 ) 11.6 Other non-current 4,711.5 — — 4,711.5 Total Non-Current 4,883.4 10.7 2.1 4,896.2 TOTAL ASSETS 11,664.8 36.2 18.8 11,719.8 Contract liabilities — 1,086.8 — 1,086.8 Advances from customers 716.4 (716.4 ) — — Provisions 135.8 (11.9 ) — 123.9 Unearned income 311.5 (311.5 ) — — Other current liabilities 2,017.2 — — 2,017.2 Total Current Liabilities 3,180.9 47.0 — 3,227.9 Contract liabilities — 157.9 — 157.9 Advances from customers 139.8 (139.8 ) — — Deferred income tax and social contribution 263.5 (1.3 ) 3.0 265.2 Unearned income 113.9 (7.0 ) — 106.9 Other non-current 4,025.5 — — 4,025.5 Total Non-Current 4,542.7 9.8 3.0 4,555.5 Equity 3,941.2 (20.6 ) 15.8 3,936.4 TOTAL LIABILITIES 11,664.8 36.2 18.8 11,719.8 As of January 1, 2016 Published IFRS 15 IFRS 9 Restated Trade accounts receivables, net 781.9 (360.6 ) 8.9 430.2 Contract assets — 387.7 — 387.7 Other current assets 5,629.7 — — 5,629.7 Total Current Assets 6,411.6 27.1 8.9 6,447.6 Financial investments 749.6 — (9.0 ) 740.6 Deferred income tax and social contribution 4.5 14.2 (3.0 ) 15.7 Other non-current 4,503.8 — — 4,503.8 Total Non-Current 5,257.9 14.2 (12.0 ) 5,260.1 TOTAL ASSETS 11,669.5 41.3 (3.1 ) 11,707.7 Contract liabilities — 1,136.8 — 1,136.8 Advances from customers 743.8 (743.8 ) — — Provisions 95.7 (6.0 ) — 89.7 Unearned income 320.0 (320.0 ) — — Other current liabilities 1,920.9 — — 1,920.9 Total Current Liabilities 3,080.4 67.0 — 3,147.4 Contract liabilities — — — — Advances from customers 164.1 (164.1 ) — — Deferred income tax and social contribution 417.3 (2.2 ) (2.0 ) 413.1 Unearned income 62.8 164.1 — 226.9 Other non-current 4,101.2 — — 4,101.2 Total Non-Current 4,745.4 (2.2 ) (2.0 ) 4,741.2 Equity 3,843.7 (23.5 ) (1.1 ) 3,819.1 TOTAL LIABILITIES 11,669.5 41.3 (3.1 ) 11,707.7 Consolidated Statements of Income Year ended December 31, 2017 Published IFRS 15 IFRS 9 Restated Revenue 5,839.3 20.1 — 5,859.4 Cost of sales and services (4,773.3 ) 9.2 — (4,764.1 ) Gross Profit 1,066.0 29.3 — 1,095.3 Operating income (expense) (736.7 ) (12.7 ) (4.0 ) (753.4 ) Operating profit 329.3 16.6 (4.0 ) 341.9 Financial result (41.0 ) — 7.0 (34.0 ) Profit before taxes on income 288.3 16.6 3.0 307.9 Income tax expense (income) (25.5 ) (3.6 ) 1.2 (27.9 ) Net income 262.8 13.0 4.2 280.0 Atributable to: Owners of Embraer 246.8 13.0 4.2 264.0 Noncontrolling interest 16.0 — — 16.0 Earnings per share-basic in US$ 0.34 0.36 Earnings per share-diluted in US$ 0.34 0.36 Year ended December 31, 2016 Published IFRS 15 IFRS 9 Restated Revenue 6,217.5 (13.6 ) — 6,203.9 Cost of sales and services (4,980.7 ) (1.3 ) — (4,982.0 ) Gross Profit 1,236.8 (14.9 ) — 1,221.9 Operating income (expense) (1,030.8 ) 14.9 7.7 (1,008.2 ) Operating profit 206.0 — 7.7 213.7 Financial result (47.0 ) — 13.9 (33.1 ) Profit before taxes on income 159.0 — 21.6 180.6 Income tax expense (income) 8.7 (4.4 ) (4.6 ) (0.3 ) Net income 167.7 (4.4 ) 17.0 180.3 Atributable to: Owners of Embraer 166.1 (4.4 ) 17.0 178.7 Noncontrolling interest 1.7 — — 1.7 Earnings per share-basic in US$ 0.23 0.24 Earnings per share-diluted in US$ 0.23 0.24 Reconciliation of restated Consolidated Statements of Changes in Shareholders’ Equity Note 2018 2017 2016 As of December 31 of the previous year - originally published 4,182.0 3,941.2 3,843.7 IFRS 9 Adjustment Decrease of accounts receivable impairment allowance 2.2.1.a)(ii ) 12.6 16.6 8.9 Adjustment to fair value due to change in classification 2.2.1.a) (i ) 0.4 4.9 (9.0 ) Financial asset reclassification from available for sale to fair value through P&L - from Other cumulative translation adjustments (OCI) (11.5 ) — — - to Retained earnings 11.5 — — Effect of deferred income tax over the adjustments (4.5 ) (5.7 ) (1.0 ) 8.5 15.8 (1.1 ) IFRS 15 Adjustment Increase (decrease) of development contracts results due to contracts 2.2.1.b) (i), (ii) combinations and modifications (2.5 ) (7.8 ) (16.1 ) Increase (decrease) of development contracts results due to changes in 2.2.1.b) (iii) performance obligations identification (20.8 ) (32.1 ) (23.8 ) Effect of foreign currency transactions in CTA 1.9 7.3 — Effect of deferred income tax over the adjustments 8.4 12.0 16.4 (13.0 ) (20.6 ) (23.5 ) As of January 1 - restated 4,177.5 3,936.4 3,819.1 a) IFRS 9 - Financial Instruments The Company adopted IFRS 9 - Financial Instruments as a basis for recognition, measurement and classification of financial instruments. This standard replaces IAS 39 - Financial Instruments: Recognition and Measurement. The adoption effects are presented retrospectively as of January 1, 2016 for the comparative periods presented in the consolidated financial statements. The changes made by the Company in its accounting practices resulting from the adoption of this new standard are detailed as follows: (i) Classification and measurement of financial assets and liabilities The Company reviewed the classification of its financial assets within the categories existing in IFRS 9 by evaluating the business model in which the financial assets are managed and the contractual cash flow characteristics. Certain financial investments in structured notes were reclassified from held to maturity category to financial assets measured as at fair value through profit or loss because their cash flows do not represent solely payments of principal and interest. For financial liabilities, there were no changes in their categories in the transition of standards. IFRS 9 mainly retains the IAS 39 requirements for classification and measurement of financial liabilities. The following table sets forth the financial assets and liabilities in the original measurement categories by IAS 39 as previously disclosed on December 31, 2017 and January 1, 2017, and the new measurement categories by adopting of IFRS 9: Financial instruments Note 12.31.2017 Category IAS 39 Categoya IFRS 9 (Restated) Assets Cash and cash equivalents 4 1,270.8 Loans and receivables Amortized cost Financial investments 5 2,617.3 1,307.6 Loans and receivables (iv) Fair value through other comprehensive income 1,199.5 Held to maturity (iv) Fair value through profit or loss 50.5 Held to maturity (iv) Amortized cost 58.8 Available for sale Fair value through profit or loss 0.9 Fair value through profit or loss Fair value through profit or loss Guarantee deposits 10 393.9 Loans and receivables Amortized cost Collateralized accounts receivable 8 288.7 Loans and receivables Amortized cost Contract assets 30 447.5 Loans and receivables Amortized cost Trade accounts receivable, net 6 297.0 Loans and receivables Amortized cost Customer and commercial financing 8 16.4 Loans and receivables Amortized cost Derivative financial instruments 7 34.3 Fair value through profit or loss Fair value through profit or loss Other assets (i) 12 82.2 Loans and receivables Amortized cost Liabilities Loans and financing 19 4,198.5 1,264.3 Liabilities measured at amortized cost and other liabilities (iv) Amortized cost 2,934.2 Liabilities measured at amortized cost and other liabilities Amortized cost Trade accounts payable and others liabilities (ii) 1,502.5 Liabilities measured at amortized cost and other liabilities Amortized cost Financial guarantee and residual value (iii) 23 139.6 108.8 Fair value through profit or loss Fair value through profit or loss 30.8 Liabilities measured at amortized cost and other liabilities Amortized cost Derivative financial instruments 7 8.9 Fair value through profit or loss Fair value through profit or loss (i) Comprises amounts of court-mandated escrow deposits and loans with jointly controlled entity. (i) Comprises amounts of trade accounts payable, other payables and non-recourse (iii) Comprises amounts of residual value guarantees and accounts payable of financial guarantee (Note 23). (iv) In Note 28.1 to the Company’s annual financial statements as of December 31, 2017, certain financial instruments measured as at amortized cost (held to maturity and loans and receivables) were incorrectly disclosed in the explanatory notes as measured at fair value through profit or loss. This correction does not affect the measurement of amounts previously disclosed considering that, despite the incorrect classification in said Note, the instruments were correctly valued according to their nature. Financial instruments Note 01.01.2017 Category IAS 39 Categoya IFRS 9 (Restated) Assets Cash and cash equivalents 4 1,241.5 Loans and receivables Amortized cost Financial investments 5 1,948.7 1,067.9 Loans and receivables (iv) Fair value through other comprehensive income 620.9 Held to maturity (iv) Fair value through other comprehensive income 173.8 Held to maturity (iv) Fair value through profit or loss 51.1 Held to maturity (iv) Amortized cost 35.0 Available for sale Fair value through profit or loss Guarantee deposits 10 511.4 Loans and receivables Amortized cost Collateralized accounts receivable 8 323.3 Loans and receivables Amortized cost Contract assets 30 370.6 Loans and receivables Amortized cost Trade accounts receivable, net 6 336.8 Loans and receivables Amortized cost Customer and commercial financing 8 37.4 Loans and receivables Amortized cost Derivative financial instruments 7 32.1 Fair value through profit or loss Fair value through profit or loss Other assets (i) 12 79.4 Loans and receivables Amortized cost Liabilities Loans and financing 19 3,759.9 1,357.4 Liabilities measured at amortized cost and other liabilities (iv) Amortized cost 2,402.5 Liabilities measured at amortized cost and other liabilities Amortized cost Trade accounts payable and others liabilities (ii) 1,722.4 Liabilities measured at amortized cost and other liabilities Amortized cost Financial guarantee and residual value (iii) 23 188.0 122.2 Fair value through profit or loss Fair value through profit or loss 65.8 Liabilities measured at amortized cost and other liabilities Amortized cost Derivative financial instruments 7 8.4 Fair value through profit or loss Fair value through profit or loss (i) Comprises amounts of court-mandated escrow deposits and loans with jointly controlled entity. (i) Comprises amounts of trade accounts payable, other payables and non-recourse (iii) Comprises amounts of residual value guarantees and accounts payable of financial guarantee (Note 23). (iv) In Note 28.1 to the Company’s annual financial statements as of December 31, 2017, certain financial instruments measured as at amortized cost (held to maturity and loans and receivables) were incorrectly disclosed in the explanatory notes as measured at fair value through profit or loss. This correction does not affect the measurement of amounts previously disclosed considering that, despite the incorrect classification in said Note, the instruments were correctly valued according to their nature. The accounting policies for classification, initial and subsequent measurement of financial assets and liabilities is disclosed in Note 2.2.4. (ii) Impairment of financial assets The Company changed the method of measuring expected losses in financial assets as a result of the adoption of the new standard, which is no longer based on incurred loss (by default) and is based on historical data, as well as expectations of future loss. The Company applied the simplified approach under IFRS 9 to measure expected credit losses, which uses a provision for expected losses for all receivables and contract assets. Expected credit losses of other financial assets measured at amortized cost and fair value through other comprehensive income are monitored periodically by the Company and no losses were identified as of December 31, 2017 and January 1, 2017. (iii) Hedge Accounting The Company decided to keep the IAS 39 standard requirements regarding hedge accounting until the IASB concludes the macro-hedge project. b) IFRS 15 - Revenue from Contracts with Customers The Company adopted IFRS 15 as a basis for revenue recognition and measurement of certain assets, liabilities and cost of sales, replacing the standards IAS 18—Revenue and IAS 11—Construction Contracts, as well as related interpretations. The transiton method is the full retrospective as of January 1, 2016 with the use of certain practical expedients. Consequently, all affected financial statements items (revenues, costs of sales, assets, liabilities and operating expenses) were adjusted retrospectively. The Company opted to use the practical expedients provided by the IFRS 15.C5 (a)(ii) and C5(d), which are transcribed below: “IFRS 15.C5. An entity may use one or more of the following practical expedients when applying this standard retrospectively in accordance with paragraph C3(a): (a) for completed contracts, an entity need not restate contracts that: (i) begin and end within the same annual reporting period; or (ii) are completed contracts at the beginning of the earliest period presented. (d) for all periods presented before the date of initial application, an entity need not disclose the amount of the transaction price allocated to the remaining performance obligations, nor an explanation of when it expects to recognize that amount as revenue.” The following adjustments and reclassifications were made to the consolidated financial statements for the prior year (December 31, 2017) and the beginning of earliest period presented (January 1, 2016) as a result of the change in accounting practices: (i) Combining contracts The Company has certain contracts negotiated with the same customer whose goods and/ or services are a single deliverable (commercial objective) and were entered by more the one entity of Embraer S.A. group, previously measured separately by each legal entity/ subsidiary. The adoption of IFRS 15 identified the need to combine these contracts for revenue recognition. Consequently, there was a need to determine the combined margin of the single performance obligation and to allocate the price, which adjusted the revenue recognition of these combined performance obligations, including provision for onerous contracts, in order to reflect the margin ascertained by the combination of the contracts. (ii) Contract modifications Development contracts signed by subsidiaries other than the Company in subsequent periods to the original agreement with the same customer and which constitute a single commercial objective under IFRS 15 were treated as contractual modifications and recognized jointly with the original agreement on a cumulative basis. (iii) Identifying performance obligations As part of the process of identifying performance obligations under the requirements of IFRS 15, there was a change in the performance obligations in certain contracts. This impact brought the need to redistribute the price of the transaction between the performance obligations of these contracts. Revenue redistribution followed the guidelines provided by the standard on the estimation of an individual selling price (stand alone), using cost plus margin method to price and discount allocation. The determination of individual sales price was made on the basis of observable data or, when not available, based on historical data or projections approved by Management. (iv) Variable consideration IFRS 15 determines that variable consideration changes the allocated price of transaction and affects revenue recognition. Previously, some variable considerations, such as fines and contractual penalties, were recognized as operating income (expenses) instead of decrease revenue, being reclassified in the respective lines for presentation of the consolidated statements of income. The methods for measuring the variable considerations, as well as the restrictions over it have not changed. (v) Costs to obtain a contract Incremental costs incurred by the Company to obtain a contract, such as sales commissions and bank guarantees, were previously recognized as operating income (expenses) because it did not meet the criteria for recognition as assets under previously accounting standards. With the adoption of IFRS 15, these incremental costs incurred exclusively to obtain a contract are capitalized as other assets and amortized when (or as that) revenue is recognized as cost of sales and services, because the Company expects to recover these costs. The impact of this topic in the trasition was reclassification of such costs from operating income (expenses) to the line of cost of sales and services in 2017 and 2016. (vi) Presentation of contract assets and liabilities The Company has reclassified certain assets and liabilities in its consolidated financial statements in order to comply with the terminology set forth in IFRS 15 of assets and liabilities of contracts with customers, being: • Contract assets of US$ 447.5 and US$ 370.6 as of December 31, 2017 and January 1, 2017, respectively, were previously presented as trade accounts receivable; • Contract liabilities of US$ 1,126.6 and US$ 1,244.8 as of December 31, 2017 and January 1, 2017, respectively, were previously presented as customer advances and deferred revenue. IFRS 15 adoption did not bring changes in the judgments made by the Company regarding the period in which the revenues from its sales contracts are recognized. c) IFRIC 22 - Foreign Currency Transactions and Advance Consideration This accounting interpretation came into effect as of January 1, 2018 and provides clarification on the transaction date to be considered for the translation of advances made or received in foreign currency transactions. According to the interpretation, the transaction date of advances paid or received is the effective date on which the entity initially recognizes the advance payment to the supplier or advance received from a customer. The Company decided to adopt the interpretation prospectively, that is, the balances of advances, including the principal amount and their respective accumulated exchange variation, as of December 31, 2017 will be considered as the initial balances of the advances to suppliers and customer advances, and the date of December 31, 2017 as the date of the transaction. 2.2.2 Functional and presentation currency A Company’s functional currency is the currency of the primary economic environment in which it operates and should be the currency that best reflects company’s business and operations. Based on this analysis, management has concluded that the US Dollar (“US$” or “Dollar”) is its functional currency, based on analysis of the following indicators: • Currency that most influences the prices of goods and services; this is the currency in which the sales price of its goods and services are expressed and settled; • Currency of the country whose competitive forces and regulations most influence the Company’s business; • Currency that most influences the costs of providing goods or services, i.e., the currency in which the Company’s costs are normally expressed and settled; and • Currency in which the Company largely obtains funds for financial operations and in which it normally receives for its sales and accumulates cash. 2.2.3 Transactions in foreign currencies Transactions in other currencies (other than the functional currency) are translated into the functional currency at the foreign exchange rates in force on the transaction dates. The amounts are updated at the exchange rates of the reporting dates. Foreign exchange gains and losses resulting from this translation (in relation to monetary assets and liabilities indexed in currencies other than the functional currency) are recognized in the consolidated statements of income as foreign exchange gain (loss), net. Customer advances and advances to suppliers for goods and/ or services in foreign currencies are translated to the Company’s functional currency in the transaction date and no subsequent translation is recognized. 2.2.4 Financial Instruments a) Financial assets a.1) Recognition and measurement Financial assets are recognized when the Company becomes part of the instrument’s contractual arrangements. It is initially measured at fair value, plus transaction costs attributable to their acquisition or issuance, except for instruments measured at fair value through profit or loss (FVTPL), for which these costs are recognized immediately in the consolidated statements of income. The Company classifies its financial assets under the following categories: (i) measured as at amortized cost, (ii) measured as at fair value through other comprehensive income (FVOCI) and (iii) measured at fair value through profit or loss (FVTPL). Financial assets are not reclassified subsequent to initial recognition, unless the Company modifies the business model for the management of these financial assets, in which case all affected assets are reclassified on the first day of the new business model. Financial assets are derecognised when the contractual rights to receive cash flows from the asset expires or are transferred in a transaction in which substantially all the risks and benefits of ownership of the financial asset are transferred by the Company. a.2) Classification and subsequent measurement The Company classifies financial assets as measured at amortized cost only if both criteria are met: • The asset is held within a business model whose objective is to collect the contractual cash flows; and • The contractual terms give rise to cash flows, at specific dates, which relate only to the payments of principal and interest. Financial assets measured as at amortized cost by the Company includes: cash and cash equivalents, certain financial investments, trade accounts receivable, contract assets, collateralized accounts receivable, customer financing, guarantee deposits and other financial assets. Financial assets measured as at fair value through other comprehensive income (FVOCI) are assets held within a business model whose purpose is achieved both through the receipt of contractual cash flows and the sale of financial assets, as well as their contractual terms generate, on specific dates, cash flows that are related only to payments of principal and interest. Changes in fair value of FVOCI financial assets are recognized in accumulated other comprehensive (income) loss in the consolidated changes in shareholders’ equity. Gains or losses due to impairment and exchange variation, including interest calculated using the effective interest method, are recognized in the consolidated statements of income as financial income (expense), net, except for the exchange variation recognized as foreign exchange gain (loss), net. In the derecognition of these financial asset |
Critical accounting estimates a
Critical accounting estimates and significant judgements | 12 Months Ended |
Dec. 31, 2018 | |
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Critical accounting estimates and significant judgements | 3. Critical accounting estimates and significant judgements Preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and adopt assumptions that affect the reported amounts of assets and liabilities, revenue and expense and their disclosure. Therefore, variables and assumptions derived from past experience and other factors deemed relevant were used in preparing accompanying consolidated financial statements included in this report. These estimates and assumptions are reviewed on an ongoing basis and the changes to accounting estimates are recognized in the period in which the estimates are revised on a prospective basis. The significant accounting policies, including the variables and assumptions used in the estimates, and the relevant sensitivity of those judgments to different scenarios and conditions are described below: 3.1. Revenue from contract with customers In the Defense & Security segment, a significant portion of revenue is derived from long-term development contracts with the Brazilian and foreign governments, recognized over time by the cost incurred method (Note 2.2.27), using the ratio of actual cumulative costs incurred divided by total estimated costs at completion for progress measurement. During the course of the contract, the Company assesses the costs incurred, adjusting total estimated costs at completion if necessary to reflect variations in costs in relation to the projection, changes in circumnstances and/ or new events, such as contract modification. Any resulting increase or decrease in estimated revenues or costs at completion is recognized as catch-up During the first half of 2018, in the development contract of KC-390 non-recurring catch-up Should the total estimated costs at completion of contracts in progress be 10% lower than Management’s actual estimates, the revenue recognized in 2018 would increase by US$ 385.9, and if the costs were 10% higher than Management’s estimates, the recognized revenue would decrease by US$ 425.7. 3.2. Residual value guarantees The residual value guarantees granted on aircraft sales may be exercised at the end of a financing contract between a financial agent and the customer/operator of these aircraft. The guarantees are initially measured at fair value and are revised quarterly to reflect changes in relation to the fair value of these commitments. The residual value guarantees may be exercised if the quoted market value is lower than the future fair value guaranteed. The future fair value is estimated in accordance with third party evaluation of the aircraft, including information from sale or leasing of similar aircraft in the secondary market. Refer to Note 26.4.5 for a sensitivity analysis of residual value guarantees. 3.3. Impairment of long-lived assets The impairment test considers the Company’s medium and long-term strategic plan cash flows, brought to present value at an appropriate discount rate compatible with the market and that reflects the shareholders’ expectations of return. In preparing or using this information, the Company uses estimates, as follows: a) Gross expected cash flow - b) Growth rates - c) Discount rates - Impairment of aircraft held in the Company’s property, plant and equipment available for leasing to third parties is measured at fair value less cost to sell or value in use. The assessment of the recoverable amount of such aircraft considers assessment of their fair value in an active market and recognition of impairment if their carrying value is higher than the fair value. If the estimated discount pre-tax 3.4. Fair value of financial instruments The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. The Company uses its judgment to select a variety of methods, using assumptions based on market conditions at the end of each reporting period. The methods and calculations are the same as known valuation techniques normally used by the financial market. Refer to Note 26.4 for sensitivity analysis of financial instruments. 3.5. Income taxes The Company is subject to income taxes in multiple jurisdictions. Significant judgment is required in determining the worldwide provision for income taxes in each jurisdiction the Company operates. There are many transactions and calculations for which the ultimate tax determination is uncertain. The Company also recognizes provisions based on estimates of whether additional taxes will be due. When the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred income tax assets and liabilities in the period in which the final amount is determined. Because the Company’s tax is largely determined in Brazilian reais and its functional currency is the dollar, the income tax expense line is highly sensitive to the effects of changes in exchange rates, particularly those due to changes in non-monetary If the real had devalued or appreciated by 10% against the dollar in relation to the actual exchange rate at December 31, 2018, the deferred income tax expense would have been higher or lower by approximately US$ 148.2. 3.6. Non-current A discontinued operation is a Company’s business component which comprises operations and cash flows that may be clearly distinct and: • Represents a separate major line of business or geographic area of operations; • It is part of a co-ordinated • It is a subsidiary acquired exclusively with a view to resale. The classification of a Company’s operation as discontinued operation is achieved through its disposal, or at the time the transaction meets the criteria of IFRS 5 to have its assets and liabilities classified as held for sale, whichever occurs earlier. An asset or group of assets and liabilities is held for sale when it is expected that its carrying amount will be recovered mainly from the sale transaction rather than continuous use. This occurs if the asset is available for immediate sale under its current conditions, subject only to customary and usual terms for the conclusion of the transaction, when the sale transaction is defined as ‘highly probable’ under the accounting standard. The transaction initiated by the Company and The Boeing Company involving assets of commercial aviation segment will be classified as held for sale and discontinued operation from February 26, 2019, date of shareholders approval on Extraordinary General Shareholders’ Meeting when the ‘highly probable’ criteria was met. As of December 31, 2018, the criteria to classify the operation as an asset held for sale and discontinued operation has not been reached. |
Accounting standards not yet ad
Accounting standards not yet adopted | 12 Months Ended |
Dec. 31, 2018 | |
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Accounting standards not yet adopted | 4. Accounting standards not yet adopted Standards and amendments to existing accounting standards mentioned in this section have been published, but implementation is not mandatory for the year ended December 31, 2018, and the Company has not early adopted the amendments in these consolidated financial statements. The accounting standards presented below may be relevant to the Company in the future, for this reason adoption projects are in course for each of them. It is not possible to estimate the effects of the adoption until such projects are concluded: • IFRS 16 - Leases that is appropriate to the local reality of each entity. In the model proposed by the new standard there are no significant changes in the accounting recognition to be made by the lessor. In adopting the standard, the Company used three practical expedients: (1) transactions below US$ 5,000 will be outside the scope of this standard, (2) all contracts with less than 12 months will not be considered for the purposes of IFRS 16 and (3) in order to define the discount rates, Management considered adopting the practical expedient which considers grouping contracts with similar characteristics. Embraer and its subsidiaries are analyzing the new accounting standard as well as the application in existing transactions and consider that there is an impact in the consolidated financial statements, implying an increase in assets and liabilities, a reduction in the value of operating expenses and an increase in financial expenses. The standard is applicable as of January 1, 2019 and the Company intends to apply the simplified transition approach and will not restate comparative amounts for the year prior to first adoption and the assets will be measured at the amount of the lease liability on adoption (adjusted for any prepaid or accrued lease expenses). The estimated effect on transition is between 0.5%-1.0% • IFRIC 23 - Uncertainty over income tax treatments Other accounting standards have been amended or are in the process of amendment and will come into effect in the coming years; however these are not mentioned, as the Company does not expect them to result in significant impacts. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2018 | |
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Cash and cash equivalents | 5. Cash and cash equivalents 12.31.2018 12.31.2017 Cash and banks 125.4 383.4 125.4 383.4 Cash equivalents Private securities (i) 352.6 219.4 Fixed deposits (ii) 802.9 668.0 1,155.5 887.4 1,280.9 1,270.8 (i) Applications in Bank Deposit Certificates (CDB’s), issued by financial institutions in Brazil, available for redemption in up to 90 days without impact on contracted remuneration; (ii) Fixed term deposits in US Dollars with original maturities of 90 days or less. |
Financial investments
Financial investments | 12 Months Ended |
Dec. 31, 2018 | |
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Financial investments | 6. Financial investments 12.31.2018 12.31.2017 (Restated) Amortised Fair value Fair value Total Amortised Fair value Fair value Total Financial instruments Private securities (i) — 50.4 — 50.4 — 516.0 0.6 516.6 Structured Notes (ii) 48.8 — 1,308.0 1,356.8 50.5 — 1,199.6 1,250.1 Fixed Deposits (iii) — 457.3 0.1 457.4 — 791.6 — 791.6 Investment funds — — 2.4 2.4 — — — — Other (iv) — — 59.9 59.9 — — 59.0 59.0 48.8 507.7 1,370.4 1,926.9 50.5 1,307.6 1,259.2 2,617.3 Current portion 1.1 507.7 1,234.6 1,743.4 1.3 1,307.6 1,057.2 2,366.1 Non-current 47.7 — 135.8 183.5 49.2 — 202.0 251.2 (i) Private securities, being: investments in Financial Bills, investments in Bank Deposit Certificates and Committed Transactions issued by Brazilian financial institutions, issued with maturities of more than 90 days. (ii) Structured notes, mainly comprised of: • Amount of US$ 1,103.7 (US$ 855.1 as of December 31, 2017), with credit risk of the issuing financial institution and the Brazilian government. • Amount of US$ 83.2 (US$ 222.2 as of December 31, 2017). In 2004, seeking to ensure profitability compatible with the term of guarantee deposit, the Company invested principal of US$ 123.4 in 15-year This yield enhancement was obtained through a credit default swap (CDS), a transaction which provides the right of early redemption of the note in the case of default by the Company. Upon such default, the note may be redeemed by the holder at its market value or its original face value, which would result in a loss to the Company of all interest accrued to that date. Default events that can bring forward the due date for the notes includes: (a) bankruptcy or insolvency of the Company and (b) failure to pay or restructuring of Company debts in financing contracts. In the event of default, the maturity dates of these notes will be brought forward and the notes will be realized at market value, limited to a minimum of the amounts originally invested. Any amount by which the market value exceeds the amount invested will be paid to the Company in the form of bonds, or loans of that amount. (iii) Fixed-term deposits in US dollars issued by financial institutions, with maturities of more than 90 days from the contract date. (iv) Refers to the shares of newly created Republic Airways Holdings, as a result of Republic Airways’ request for bankruptcy. These shares were received by the Company as part of the entity restructuring plan (see Note 23—Financial Guarantees). The weighted average interest rate as of December 31, 2018 related to cash equivalents and financial investments in Brazilian Reais were of 6.56% p.a. and in US Dollars 2.40% p.a. (10.18% and 1.70% p.a. respectively as of December 31, 2017). |
Trade accounts receivable, net
Trade accounts receivable, net | 12 Months Ended |
Dec. 31, 2018 | |
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Trade accounts receivable, net | 7. Trade accounts receivable, net 12.31.2018 12.31.2017 01.01.2017 (Restated) (Restated) Foreign customers 325.7 306.3 305.0 Brazilian Air Force 21.8 14.4 9.1 Domestic customers 15.5 29.2 64.3 363.0 349.9 378.4 Allowance for doubtful accounts (45.0 ) (52.9 ) (41.6 ) 318.0 297.0 336.8 The amounts and maturities of these trade accounts receivable are shown below: 12.31.2018 12.31.2017 01.01.2017 (Restated) (Restated) Current 217.0 223.6 279.6 Up to 90 days 52.6 48.6 49.6 From 91 to 180 days 13.6 15.7 19.5 More than 180 days 79.8 62.0 29.7 363.0 349.9 378.4 Changes in estimated credit losses year over year are shown below: 12.31.2018 12.31.2017 01.01.2017 (Restated) (Restated) Beginning balance (52.9 ) (41.6 ) (38.4 ) Additions (5.8 ) (22.1 ) (36.0 ) Reversal 17.7 9.9 12.5 Write-off 3.6 5.2 10.3 Foreign exchange variation (7.6 ) (4.3 ) 10.0 Ending balance (45.0 ) (52.9 ) (41.6 ) |
Derivative financial instrument
Derivative financial instruments | 12 Months Ended |
Dec. 31, 2018 | |
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Derivative financial instruments | 8. Derivative financial instruments Derivative financial instruments are contracted to protect the Company’s operations from exchange and interest rate fluctuation risks and are not used for speculation. As of December 31, 2018, the Company had the following instruments: • Non-deliverable • Swap operations, with the main objective of changing the debts index, from floating rates to fixed interest rates or vice versa, exchange of Dollar to Real or Euro and vice versa. The fair values of these instruments are measured by the future flow, determined by applying contractual interest rates to maturity, and discounted to present value at the date of the consolidated financial statements by the prevailing market rates. • Transactions with purchase options and currency sale, in order to protect cash flows of wage costs denominated in Reais, against the risk of currency fluctuations. The financial instrument used by the Company is zero-cost Purpose Risk Counterparty Settlement 12.31.2018 12.31.2017 Derivatives designated as hedge accounting Expenses in Brazilian Reais (i) Exchange rate Citibank BofaMLynch Santander BNP Paribas Bradesco Itau BBA 2019 (1.9) 0.8 Export financing (ii) Interest rate Bradesco BofaMLynch Santander — — 3.7 Project development (ii) Interest rate Itau BBA Votorantim BofaMLynch Santander HSBC Société Générale Safra Morgan Stanley S/A Bradesco 2023 0.3 0.3 Investments Interest rate Bradesco Santander BNP Paribas — — (1.1) Export Exchange rate and Interest rate Santander — — (0.1) Export (iii) Interest rate Itau BBA 2027 2.3 0.5 Other Derivatives 1.2 24.8 Recourse and non-recourse Interest rate Natixis 2022 0.3 1.0 Acquisition of property, plant and equipment (v) Interest rate Compass Bank 2024 (0.1) (0.2) Export (vi) Exchange rate Santander Totta Natixis BNP Paribas 2019 — — 0.2 0.6 1.4 25.4 (i) Zero-cost collar financial instruments, designated as cash flow hedge, in the total amount of US$ 296.7, through purchase of a put option at the weighted average exercise price of R$ 3.43 and through the sale of a call option at the weighted average exercise price of R$ 4.10 for the year of 2019. (ii) Interest rate swap, designated as fair value hedge, of US$ 277.6 related to the Export and Project Development debt lines, subject to a weighted average fixed interest rate of 4.51% p.a. to a weighted average floating rate equivalent to 34.49% p.a. of CDI index (Interbank Deposit Certificate). (iii) Interest rate swap, designated as cash flow hedge, which converted 6-month (iv) Interest rate swap, which converted the amount of US$ 7.3 of recourse and non-recourse (v) Interest rate swap, related to operation in the amount of US$ 3.2, which converted a floating interest rate of LIBOR 1 month + 2.44% p.a. for fixed rate of 5.23% p.a. (vi) Non-deliverable As of December 31, 2018, loans and financing measured as at amortized cost amounted to US$ 3,647.6, and US$ 3,648.4 considering the effect of fair value of hedged risks by the hedge structures (As of December 31, 2017 US$ 4,198.3 and US$ 4,198.5, respectively). The hedge effectiveness determined for the fair value and cash flow hedges in the inception date was 1:1 and 1:1, respectively. Considering changes in the discounted value of hedge instruments not yet liquidated since January 1 st As of December 31, 2018 and 2017, the fair value of the derivative financial instruments was recorded in the consolidated statements of financial position as follows: 12.31.2018 12.31.2017 Assets Current portion 5.4 29.5 Non-current 4.1 4.8 Liabilities Current portion (8.1 ) (8.8 ) Non-current — (0.1 ) Net derivative financial instruments 1.4 25.4 |
Collateralized accounts receiva
Collateralized accounts receivable and recourse and non-recourse debt | 12 Months Ended |
Dec. 31, 2018 | |
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Collateralized accounts receivable and recourse and non-recourse debt | 9. Collateralized accounts receivable and recourse and non-recourse Refers to structured transactions in which the amount receivable comprises financial inflows to be received over time and residual values of aircraft under specified return conditions to be received at the end of the contract. The residual value of aircraft is monitored with the objective of recognizing its fair value in the accounts. These structured transactions (Note 2.2.9) were financed by a third party and the amounts were recognized as recourse and non-recourse The cash inflow of certain structured transactions was sold to third parties, to whom financial guarantees were granted. In such cases the Company maintained the cash inflow in collateralized accounts receivable and recognized the corresponding liabilities in recourse and non-recourse 9.1 Collateralized accounts receivable 12.31.2018 12.31.2017 Estimated residual value of leased assets 215.8 215.6 Minimum lease payments receivable 122.6 127.6 Guaranteed operation (cash inflow) 27.0 42.7 Impairment (i) (129.5 ) (97.2 ) Investment in sales-type lease 235.9 288.7 Current portion 218.5 185.6 Non-current 17.4 103.1 (i) The amount recognized relates to the devaluation of assets linked to structured financing . As of December 31, 2018, the maturities of the amounts classified as non-current Year 2019 3.7 2020 3.9 2021 4.0 2022 2.6 Thereafter 2022 3.2 17.4 9.2 Recourse and non-recourse 12.31.2018 12.31.2017 Recourse debt 330.6 347.0 Non-recourse 10.8 17.1 341.4 364.1 Current portion 324.0 17.6 Non-current 17.4 346.5 As of December 31, 2018, the maturities of the amounts classified as non-current Year 2019 3.7 2020 3.9 2021 4.0 2022 2.6 Thereafter 2022 3.2 17.4 |
Guarantee deposits
Guarantee deposits | 12 Months Ended |
Dec. 31, 2018 | |
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Guarantee deposits | 10. Guarantee deposits 12.31.2018 12.31.2017 Sales financing guarantees (i) 314.4 321.4 Sales structure guarantees (ii) 25.3 60.8 Other 10.0 11.7 349.7 393.9 Current portion 339.9 0.1 Non-current 9.8 393.8 (i) Dollar-denominated financial investments linked to sales structures until the completion of these structures and settlement of the recourse and non-recourse (ii) US dollar amounts deposited in an escrow account as collateral for the financing of certain aircraft sold where Embraer serves as secondary guarantor. If the initial guarantor of the debt (unrelated party) is required to pay the lender, the initial guarantor will be entitled to the amount in the escrow account in proportion to their guarantee. The amount is returned in the form of cash to the Company at maturity of the financing contracts if the aircraft purchaser does not default on the loan. The interest on the escrow account is added to the principal and recognized by the Company as financial income. As of 31 December 2018 the guarantor to whom the guarantees are linked was in compliance. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
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Inventories | 11. Inventories 12.31.2018 12.31.2017 Raw materials 897.6 865.6 Work in process 891.6 612.4 Spare parts 424.3 405.2 Finished goods (i) 146.4 89.9 Held by third parties 108.7 82.3 Inventory in transit 91.1 85.2 Consumption materials 48.3 47.6 Used aircraft (ii) 46.0 102.0 Advances to suppliers 31.4 28.9 Loss on adjustment to market value (iii) (7.7 ) (17.2 ) Loss due to obsolescence (iv) (170.7 ) (153.2 ) 2,507.0 2,148.7 (i) The following aircraft were held in the finished products inventory: • December 31, 2018: two Legacy 450, four Legacy 500, one Phenom 100; three Phenom 300, one Lineage and two Ipanemas. • December 31, 2017: one Legacy 450, one Phenom 100, one Phenom 300, two Legacy 500, one Lineage and two Ipanemas. Of the total aircraft held in inventories as of December 31, 2018, one Ipanema and one Phenom 300 had been delivered by until March 25, 2019. (ii) The following used aircraft were held in inventory as available for sale: • December 31, 2018: one Legacy 450, one Lineage, one Phenom 300; • December 31, 2017: three ERJ 140, two Lineage and one Boeing BBJ 737 (iii) Refers to the provision recorded for adjustments to the realizable value of used aircraft, as follows: 12.31.2018 12.31.2017 12.31.2016 Beginning balance (17.2 ) (19.9 ) (25.4 ) Additions (8.8 ) (8.2 ) (14.0 ) Disposals 18.3 10.9 19.5 Ending balance (7.7 ) (17.2 ) (19.9 ) (iv) A provision was recorded for items without activity for over two years and with no planned use in the production program, and to cover expected losses from excess inventories or obsolete work in progress, except for inventories of spare parts, for which the provision is based on technical obsolescence of items without activity for over two years. Changes in the provision for obsolescence were as follows: 12.31.2018 12.31.2017 12.31.2016 Beginning balance (153.2 ) (138.1 ) (161.2 ) Additions (59.8 ) (48.7 ) (59.8 ) Disposals 41.5 37.0 83.7 Foreign exchange loss 0.8 (3.4 ) (0.8 ) Ending balance (170.7 ) (153.2 ) (138.1 ) |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2018 | |
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Other assets | 12. Other assets 12.31.2018 12.31.2017 Taxes recoverable (i) 132.2 171.0 Other debtors (ii) 61.6 53.5 Court-mandated escrow deposits (iii) 43.0 62.5 Prepaid expenses 24.3 22.4 Loan with a joint operation (iv) 23.2 19.7 Advances to employees 8.5 12.5 Advances for services to be rendered 3.2 11.5 Other 13.0 23.7 309.0 376.8 Current portion 203.4 255.3 Non-current 105.6 121.5 (i) Taxes recoverable 12.31.2018 12.31.2017 ICMS (State Value-added Tax) and IPI (Excise Tax) 85.5 96.3 PIS (Social Integration Program) and COFINS (Contribution for Social Security) 24.5 51.1 Income tax and social security on net income withheld 7.7 8.8 ISS (Service tax) 5.9 6.3 Other 8.6 8.5 132.2 171.0 Current portion 93.7 120.4 Non-current 38.5 50.6 (ii) Corresponds mainly to rework done on products supplied by third parties, which will be reimbursed according to the contractual terms and credits negotiated with certain suppliers that will be consumed over time from other receivables from suppliers. (iii) Refers to deposits arising from lawsuits, substantially to federal taxes and contributions (Note 22). (iv) Corresponds to the jointly controlled operation of the Embraer group (Note 2.1.2), where only assets and liabilities under the Company’s liability are consolidated. In this way, the amount presented, refers to the balance of loan receivable from the other partner of EZ Air Interior Limited. |
Interest in entities
Interest in entities | 12 Months Ended |
Dec. 31, 2018 | |
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Interest in entities | 13. Interest in entities (i) Wholly owned subsidiaries and special purpose entities Wholly-owned subsidiaries and special purpose entities (SPEs) controlled directly or indirectly by the Company and jointly controlled entities are described in notes 2.1.2 and 2.1.3 and are consolidated into the Embraer group. There are no contractual or legal restrictions on the Company’s access to assets or settlement of liabilities of the wholly owned subsidiaries of the group. There are inherent risks to the operations of these entities, the most significant of which are described below: • Economic Risks: potential losses from fluctuations in market conditions (price of products, exchange rate and interest); • Operational risk: potential losses resulting from the emergence of new technologies or failure of current processes; • Credit risk: potential losses that might occur if a third party (customer) becomes unable to meet its obligations; and • Liquidity risk: financial inability to meet financial obligations. (ii) Subsidiaries with participation of non-controlling Non-controlling Entity Country Participation Participation OGMA - Indústria Aeronática de Portugal S.A. Portugal 65.0 % 35.0 % Embraer CAE Training Services Ltd. United Kingdom 51.0 % 49.0 % Visiona Tecnologia Espacial S.A. Brazil 51.0 % 49.0 % Embraer CAE Training Services United States of America 51.0 % 49.0 % Embraer group holds 51.0% of the entities Embraer CAE Training Services Ltd., Visiona Tecnologia Espacial S.A. and Embraer CAE Training Services. The powers described in the contractual agreements show that the Board of Directors is mainly comprised of Embraer representatives and the Embraer Group directs the principal operating activities of the entity. The financial position of the most significant entity of the group with non-controlling 12.31.2018 12.31.2017 01.01.2017 Cash and cash equivalents 12.9 11.1 23.7 Current assets 168.9 207.9 155.1 Non current assets 61.0 66.0 55.4 Current liabilities 74.5 117.4 76.5 Non current liabilities 0.1 0.9 7.3 Noncontrolling interest 54.3 54.4 44.2 12.31.2018 12.31.2017 12.31.2016 (Restated) (Restated) Revenue 240.5 222.1 216.3 Net income for the year 9.6 12.3 11.2 Group subsidiaries with non-controlling (iii) Jointly controlled entity EZ Air Interior Limited is a joint operation between the Embraer group and Zodiac Aerospace and shares with the other members’ joint management of the entities’ relevant activities. The Company accounts for the assets, liabilities, revenues and expenses relating to its involvement in the joint operations in accordance with the rights and obligations assigned to Embraer. 12.31.2018 12.31.2017 01.01.2017 Cash and cash equivalents 1.3 1.2 1.4 Current assets 24.5 28.8 27.7 Non current assets 8.0 7.1 5.4 Current liabilities 13.1 48.2 24.6 Non current liabilities 41.5 4.4 25.4 12.31.2018 12.31.2017 12.31.2016 (Restated) (Restated) Revenue 48.4 42.0 47.4 Net income (loss) for the year (5.4 ) 0.1 (9.3 ) |
Related parties
Related parties | 12 Months Ended |
Dec. 31, 2018 | |
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Related parties | 14. Related parties 14.1 Related party transactions The table below summarizes balances and transactions with related parties outside the group and refers mainly to: • assets: (i) accounts receivable for spare parts, aircraft sales and product development, under conditions agreed between the parties, considering the volumes, risks involved and corporate policies (ii) mutual loans to subsidiaries abroad with interest rates compatible with those used by the Company on acquiring resources in foreign currencies (iii) balances of financial investments; and (iv) bank deposits; • liabilities: (i) purchase of aircraft components and spare parts, under conditions agreed between the parties, considering the volumes, risks involved and corporate policies (ii) advances received on accountofsales contracts, according to contractual agreements; (iii) commission for sale of aircraft and spare parts (iv) financing for research and product development at market rates for this kind of financing (v) loans and financing; and (vi) mutual loan contracts with the subsidiaries abroad with interest rates equivalent to those used by the Company to acquire similar funding (vii) export financing; and • Amounts in the consolidated statements of income: (i) purchases and sales of aircraft, components and spare parts and development of products for the defense and security market; (ii) financial income from financial investments and mutual loans; (iii) supplementary pension plan. 14.1.1 December 31, 2018 Current Non-current Financial Operating Assets Liabilities Assets Liabilities Results Results Banco do Brasil S.A. 326.2 314.3 9.4 — (4.2 ) — Banco Nacional de Desenvolvimento Econômico e Social – BNDES — 71.8 — 119.7 (8.3 ) — Caixa Econômica Federal — — — — 0.2 — Brazilian Air Force 42.3 90.3 — — — (176.2 ) Marinha do Brasil 0.9 — — — — (12.6 ) Embraer Prev – Sociedade de Previdência Complementar — 0.2 — — — (14.4 ) Brazilian Army — 4.3 — — — — Financiadora de Estudo e Projetos – FINEP — 13.0 — 43.5 (2.3 ) — 369.4 493.9 9.4 163.2 (14.6 ) (203.2 ) 14.1.2 December 31, 2017 Current Non-current Financial Operating Assets Liabilities Assets Liabilities Results Results Banco do Brasil S.A. 227.2 92.9 330.8 319.5 (0.5 ) — Banco Nacional de Desenvolvimento Econômico e Social – BNDES — 88.4 — 219.0 (14.7 ) — Brazilian Air Force 314.1 90.3 — — — (23.7 ) Marinha do Brasil 6.6 — — — — (6.2 ) Caixa Econômica Federal 9.8 — — — — — Embraer Prev - Sociedade de Previdência Complementar — 0.2 — — — (22.9 ) Brazilian Army — 11.1 — — — (1.2 ) Financiadora de Estudo e Projetos – FINEP — 15.7 — 64.6 (2.9 ) — 557.7 298.6 330.8 603.1 (18.1 ) (54.0 ) 14.1.3 December 31, 2016 12.31.2016 Financial Operating Banco do Brasil S.A. (2.8 ) — Banco Nacional de Desenvolvimento Econômico e Social – BNDES (18.6 ) — Brazilian Air Force — 25.6 Marinha do Brasil — (2.7 ) Caixa Econômica Federal 28.5 — Embraer Prev – Sociedade de Previdência Complementar — (23.2 ) Brazilian Army — 5.0 Financiadora de Estudo e Projetos – FINEP (2.9 ) — Telecomunicações Brasileiras S.A. - Telebrás — (2.1 ) 4.2 2.6 14.2 Brazilian Federal Government – relationship Through its direct and indirect participation and ownership of a common share, denominated “golden share”, the Brazilian Federal Government is a significant shareholder. As of December 31, 2018, in addition to its “golden share”, the Brazilian Federal Government held an indirect stake of 5.37% in the Company’s capital through BNDESPAR, a wholly-owned subsidiary of the Banco Nacional do Desenvolvimento Econômico e Social – The Brazilian government plays a key role in the Company’s business activities, including as: • a major customer for defense products (through the Brazilian Air Force, Army and Navy); • a source of research and development financing through technology development institutions such as FINEP and the BNDES; • an export credit agency (through the BNDES); and • a source of short-term and long-term financing and a provider of asset management and commercial banking services (through Banco do Brasil). 14.3 Remuneration of key management personnel: 12.31.2018 12.31.2017 Short-term benefits (i) 10.0 10.1 Share based payment 3.3 2.4 Labor contract termination 1.0 1.1 14.3 13.6 (i) Includes wages, salaries, profit sharing, bonuses and indemnities. Key Management includes members of the statutory Board of Directors and Executive Directors. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2018 | |
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Property, plant and equipment | 15. Property, plant and equipment The annual weighted average rates by asset class are shown below. This information is based on the consolidated depreciation of the assets recognized in the year, compared, after annualization and elimination of any non-typical Class of assets Weighted average depreciation rate (%) 12.31.2018 12.31.2017 Buildings and improvements 3.8 % 4.6 % Installations 4.9 % 5.5 % Machinery and equipment 10.0 % 13.0 % Furniture and fixtures 9.3 % 11.8 % Vehicles 22.7 % 27.7 % Aircraft 11.0 % 8.0 % Computers and peripherals 27.6 % 28.2 % Tooling 16.5 % 16.4 % Other assets 0.1 % 0.7 % Exchange pool program assets 3.7 % 3.8 % 12.31.2018 Land Buildings and Installations Machinery Furniture and Vehicles Aircraft Computers and Tooling Other Exchange Construction Total Cost At December 31, 2017 11.0 741.8 161.4 971.8 74.9 17.5 193.2 190.3 620.9 26.0 672.5 76.5 3,757.8 Additions — 1.3 — 28.5 1.9 0.5 10.2 6.3 16.6 1.4 46.3 41.3 154.3 Disposals — (10.9 ) (0.9 ) (36.5 ) (2.1 ) (0.5 ) (0.3 ) (6.4 ) (1.7 ) — (20.2 ) (0.7 ) (80.2 ) Impairment(ii) — — — (0.3 ) — — (6.0 ) — (2.5 ) — — — (8.8 ) Reclassifications* — 19.3 2.1 8.8 (0.1 ) — (120.8 ) 0.9 0.5 0.2 (31.8 ) (26.7 ) (147.6 ) Interest on capitalized assets — — — — — — — — — — — 4.8 4.8 Translation adjustments — (1.4 ) (0.2 ) 0.1 (0.4 ) (0.2 ) (0.1 ) (1.1 ) (4.7 ) — (16.0 ) (1.5 ) (25.5 ) At December 31, 2018 11.0 750.1 162.4 972.4 74.2 17.3 76.2 190.0 629.1 27.6 650.8 93.7 3,654.8 Accumulated depreciation At December 31, 2017 — (208.9 ) (104.1 ) (506.6 ) (43.4 ) (13.4 ) (81.3 ) (148.4 ) (329.7 ) (9.9 ) (207.2 ) — (1,652.9 ) Depreciation — (20.2 ) (2.8 ) (46.4 ) (2.9 ) (1.0 ) (9.1 ) (11.5 ) (48.1 ) — (17.2 ) — (159.2 ) Disposals — 10.7 0.9 33.5 1.5 0.4 0.3 6.3 0.7 — 6.9 — 61.2 Reclassifications* — 0.1 0.3 2.8 — — 51.4 (1.7 ) — (1.5 ) — — 51.4 Interest on capitalized assets — (1.5 ) — — — — — — — — — — (1.5 ) Translation adjustments — 0.4 0.1 (1.4 ) 0.2 0.2 — 0.8 5.6 — 5.0 — 10.9 At December 31, 2018 — (219.4 ) (105.6 ) (518.1 ) (44.6 ) (13.8 ) (38.7 ) (154.5 ) (371.5 ) (11.4 ) (212.5 ) — (1,690.1 ) Net At December 31, 2017 11.0 532.9 57.3 465.2 31.5 4.1 111.9 41.9 291.2 16.1 465.3 76.5 2,104.9 At December 31, 2018 11.0 530.7 56.8 454.3 29.6 3.5 37.5 35.5 257.6 16.2 438.3 93.7 1,964.7 12.31.2017 Land Buildings and Installations Machinery Furniture and Vehicles Aircraft Computers Tooling Other Exchange Construction Total Cost At December 31, 2016 11.0 657.1 156.1 909.8 74.1 16.8 316.7 179.3 587.8 29.4 669.7 116.4 3,724.2 Additions — 4.1 — 40.3 3.6 0.4 14.4 11.4 30.8 8.6 43.6 80.5 237.7 Disposals — (8.1 ) — (10.1 ) (1.9 ) (0.7 ) (8.1 ) (0.8 ) (1.0 ) — (33.5 ) (1.1 ) (65.3 ) Impairment(ii) — — — (2.2 ) — — (25.8 ) — (2.1 ) — — — (30.1 ) Reclassifications* — 85.5 4.8 22.5 (1.4 ) 0.5 (104.0 ) (0.7 ) 5.1 (12.0 ) (22.2 ) (142.0 ) (163.9 ) Interest on capitalized assets — — — — — — — — — — — 22.1 22.1 Translation adjustments — 3.2 0.5 11.5 0.5 0.5 — 1.1 0.3 — 14.9 0.6 33.1 At December 31, 2017 11.0 741.8 161.4 971.8 74.9 17.5 193.2 190.3 620.9 26.0 672.5 76.5 3,757.8 Accumulated depreciation At December 31, 2016 — (191.3 ) (101.4 ) (445.1 ) (40.0 ) (12.7 ) (153.9 ) (136.2 ) (278.9 ) (9.4 ) (201.1 ) — (1,570.0 ) Depreciation — (21.3 ) (3.0 ) (60.3 ) (4.0 ) (1.2 ) (25.6 ) (12.1 ) (50.8 ) (0.2 ) (18.0 ) — (196.5 ) Disposals — 4.1 — 7.5 1.0 0.6 6.9 0.6 0.3 — 8.8 — 29.8 Reclassifications* — 0.6 0.4 — — 0.3 91.3 — — (0.3 ) — — 92.3 Translation adjustments — (1.0 ) (0.1 ) (8.7 ) (0.4 ) (0.4 ) — (0.7 ) (0.3 ) — 3.1 — (8.5 ) At December 31, 2017 — (208.9 ) (104.1 ) (506.6 ) (43.4 ) (13.4 ) (81.3 ) (148.4 ) (329.7 ) (9.9 ) (207.2 ) — (1,652.9 ) Net At December 31, 2016 11.0 465.8 54.7 464.7 34.1 4.1 162.8 43.1 308.9 20.0 468.6 116.4 2,154.2 At December 31, 2017 11.0 532.9 57.3 465.2 31.5 4.1 111.9 41.9 291.2 16.1 465.3 76.5 2,104.9 12.31.2016 Land Buildings and Installations Machinery Furniture and Vehicles Aircraft Computers Tooling Other Exchange Construction Total Cost At December 31, 2015 11.0 616.5 151.8 853.3 70.5 17.0 323.5 163.2 533.5 22.8 622.6 75.8 3,461.5 Additions — 0.6 — 54.8 4.0 0.7 137.4 17.3 54.6 8.6 65.5 91.7 435.2 Disposals — (9.3 ) (0.2 ) (7.6 ) (2.3 ) (0.9 ) (17.8 ) (3.0 ) (0.9 ) — (15.1 ) (7.1 ) (64.2 ) Impairment — — — — — — (27.0 ) — — — — — (27.0 ) Impairment (iii) — — — — — — (64.9 ) — — — — — (64.9 ) Reclassifications* — 49.9 4.4 10.2 1.9 0.2 (34.7 ) 1.7 0.9 (2.0 ) 1.2 (59.8 ) (26.1 ) Interest on capitalized assets — — — — — — — — — — — 16.1 16.1 Translation adjustments — (0.6 ) 0.1 (0.9 ) — (0.2 ) 0.2 0.1 (0.3 ) — (4.5 ) (0.3 ) (6.4 ) At December 31, 2016 11.0 657.1 156.1 909.8 74.1 16.8 316.7 179.3 587.8 29.4 669.7 116.4 3,724.2 Accumulated depreciation At December 31, 2015 — (180.8 ) (97.2 ) (389.5 ) (37.9 ) (12.5 ) (156.4 ) (128.7 ) (233.4 ) (9.4 ) (188.3 ) — (1,434.1 ) Depreciation (20.0 ) (4.2 ) (62.7 ) (4.1 ) (1.1 ) (25.4 ) (10.4 ) (44.7 ) — (21.9 ) (194.5 ) Disposals — 9.2 — 4.9 1.9 0.8 15.5 2.9 0.5 — 6.0 — 41.7 Reclassifications* — — — 1.8 — — 8.6 (0.1 ) (1.6 ) — — — 8.7 Translation adjustments — 0.3 — 0.4 0.1 0.1 3.8 0.1 0.3 — 3.1 — 8.2 At December 31, 2016 — (191.3 ) (101.4 ) (445.1 ) (40.0 ) (12.7 ) (153.9 ) (136.2 ) (278.9 ) (9.4 ) (201.1 ) — (1,570.0 ) Net 11.0 435.7 54.6 463.8 32.6 4.5 167.1 34.5 300.1 13.4 434.3 75.8 2,027.4 At December 31, 2015 11.0 465.8 54.7 464.7 34.1 4.1 162.8 43.1 308.9 20.0 468.6 116.4 2,154.2 * On December 31, 2018, 2017 and 2016, reclassification of “Aircraft” and “Exchange pool program assets” classes refers to aircraft and items transferred to the inventory for sale purposes. In addition, in September 2017, 17 ERJ 145 aircraft were transferred to inventory in order to be disassembled and sold as parts (part-out (i) The aircraft are used for testing, shuttle and operating leases and are adjusted to fair value, if applicable. The following aircraft are held: • December 31, 2018: three ERJ 135, 15 ERJ 145, one EMBRAER 190, one EMBRAER 120, one Legacy 450, one 690B; and • December 31, 2017: nine ERJ 135, 26 ERJ 145, four EMBRAER 170, one EMBRAER 190, one EMBRAER 120, one Legacy 450, one Legacy 500, one Phenom 300, one 690B. (ii) Impairment losses recognized as discussed in Note 17. As of December 31, 2018, property, plant and equipment of US$ 114.5 were pledged as collateral for loans, financing and labor contingencies (December 31, 2017, US$ 134.1). The average rate for capitalization of borrowing costs is 5.5% p.a. for the year ended December 31, 2018 (5.4% p.a. for year ended December 31, 2017). |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Intangible assets | 16. Intangible assets Internally developed intangible assets relate to expenditure incurred in developing new aircraft, including support services, production labor, materials and direct labor allocated to the construction of aircraft prototypes or significant components, and also the use of advanced technologies to make the aircraft lighter, quieter, more comfortable and energy-efficient and to reduce emissions, in addition to speeding up design and manufacture, while optimizing the use of resources. 12.31.2018 Internally developed Acquired from third party Commercial Executive Defense and Other Development Software Goodwill Other Total Intangible cost At December 31, 2017 1,825.2 1,355.7 33.5 5.8 13.9 343.3 12.0 45.6 3,635.0 Additions 209.3 41.3 4.0 0.1 2.5 8.0 — 25.1 290.3 Contributions from suppliers (125.5 ) — — — — — — — (125.5 ) Disposals — — — — — (3.4 ) — — (3.4 ) Reclassifications — — 5.9 (2.4 ) (10.1 ) 2.4 — (1.9 ) (6.1 ) Impairment — (58.5 ) — — — — — — (58.5 ) Interest on capitalized assets 7.3 2.7 — — — — — — 10.0 Translation adjustments — — — — — — (1.6 ) — (1.6 ) At December 31, 2018 1,916.3 1,341.2 43.4 3.5 6.3 350.3 10.4 68.8 3,740.2 Acumulated amortization At December 31, 2017 (1,031.8 ) (473.7 ) (27.9 ) (1.1 ) (6.8 ) (206.9 ) — (4.4) (1,752.6 ) Amortization (29.6 ) (51.1 ) (1.8 ) (0.1 ) (0.9 ) (28.1 ) — (1.2 ) (112.8 ) Amortization of contribution from suppliers 8.0 14.0 — — — — — — 22.0 Disposals — — — — — 2.2 — — 2.2 Reclassifications — — (2.7 ) — 4.8 — — (0.7 ) 1.4 Interest on capitalized assets (0.2 ) (1.4 ) — — — — — — (1.6 ) At December 31, 2018 (1,053.6 ) (512.2 ) (32.4 ) (1.2 ) (2.9 ) (232.8 ) — (6.3) (1,841.4 ) Intangible, net At December 31, 2017 793.4 882.0 5.6 4.7 7.1 136.4 12.0 41.2 1,882.4 At December 31, 2018 862.7 829.0 11.0 2.3 3.4 117.5 10.4 62.5 1,898.8 12.31.2017 Internally developed Acquired from third party Commercial Executive Defense and Other Development Software Goodwill Other Total Intangible cost At December 31, 2016 1,515.1 1,320.3 30.8 51.8 13.5 311.4 21.0 32.8 3,296.7 Additions 313.8 76.9 3.0 2.5 1.9 56.3 — 16.1 470.5 Contributions from suppliers (86.0 ) — — — — — — — (86.0 ) Disposals — — — — (1.5 ) — — — (1.5 ) Reclassifications 71.3 3.6 (0.3 ) (48.5 ) — (24.4 ) — (1.7 ) — Impairment — (49.9 ) — — — — (8.7 ) (1.9 ) (60.5 ) Interest on capitalized assets 11.0 4.8 — — — — — — 15.8 Translation adjustments — — — — — — (0.3 ) 0.3 — At December 31, 2017 1,825.2 1,355.7 33.5 5.8 13.9 343.3 12.0 45.6 3,635.0 Acumulated amortization At December 31, 2016 (992.4 ) (424.9 ) (25.6 ) — (5.7 ) (179.8 ) — (3.7) (1,632.1 ) Amortization (57.4 ) (56.7 ) (2.6 ) (0.1 ) (1.1 ) (27.1 ) — (1.2 ) (146.2 ) Amortization of contribution from suppliers 13.5 13.8 — — — — — — 27.3 Reclassifications 4.5 (4.3 ) 0.3 (1.0 ) — — — 0.5 — Interest on capitalized assets — (1.6 ) — — — — — — (1.6 ) At December 31, 2017 (1,031.8 ) (473.7 ) (27.9 ) (1.1 ) (6.8 ) (206.9 ) — (4.4) (1,752.6 ) Intangible, net At December 31, 2016 522.7 895.4 5.2 51.8 7.8 131.6 21.0 29.1 1,664.6 At December 31, 2017 793.4 882.0 5.6 4.7 7.1 136.4 12.0 41.2 1,882.4 12.31.2016 Internally developed Acquired from third party Commercial Executive Defense and Other Development Software Goodwill Other Total Intangible cost At December 31, 2015 1,276.1 1,248.9 25.6 36.1 10.1 263.3 16.4 24.0 2,900.5 Additions 351.1 65.4 5.2 15.7 10.7 48.1 — 8.8 505.0 Contributions from suppliers (123.9 ) — — — — — — — (123.9 ) Reclassifications — — — — (7.3 ) — — — (7.3 ) Interest on capitalized assets 11.8 6.0 — — — — — — 17.8 Translation adjustments — — — — — — 4.6 — 4.6 At December 31, 2016 1,515.1 1,320.3 30.8 51.8 13.5 311.4 21.0 32.8 3,296.7 Acumulated amortization At December 31, 2015 (923.6 ) (377.1 ) (25.6 ) — (4.6 ) (160.9 ) — (3.3) (1,495.1 ) Amortization (92.0 ) (61.5 ) — — (1.1 ) (18.9 ) — (0.4 ) (173.9 ) Amortization of contribution from suppliers 23.2 15.1 — — — — — — 38.3 Interest on capitalized assets — (1.4 ) — — — — — — (1.4 ) At December 31, 2016 (992.4 ) (424.9 ) (25.6 ) — (5.7 ) (179.8 ) — (3.7) (1,632.1 ) Intangible, net At December 31, 2015 352.5 871.8 — 36.1 5.5 102.4 16.4 20.7 1,405.4 At December 31, 2016 522.7 895.4 5.2 51.8 7.8 131.6 21.0 29.1 1,664.6 |
Impairment test
Impairment test | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Impairment test | 17. Impairment test As of December 31, 2018, the Company performed its annual impairment test of the CGUs to which goodwill and indefinite-lived assets are allocated, as well as for those CGUs which presented indicators the carrying amount may not be recoverable generate by new events or change in circumstances. The Company performed impairment tests of the carrying amount of each applicable CGUs based in the value in use approach. Value in use was estimated using the discounted cash flow method for each applicable CGU. The process of estimating the value in use involves assumptions, judgments and estimates for future cash flows which represent the Management’s best estimate approved by the Board of Directors. As of December 31, 2018, no impairment losses were identified, except for losses of US$ 61.3 in relation to the full remaining internally developed assets of Lineage 1000 aircraft model (Segment of Executive Aviation), for which US$ 58.5 was allocated in intangible assets and US$ 2.8 as losses on property, plant and equipament, related to sales forecast review of this aircraft model. As of December 31, 2017, losses of US$ 50.5 and US$ 8.7 were recognized in CGUs of Legacy 650 aircraft (Segment of Executive Aviation) and of Monitoring, Sensoring and Radars, respectively. Losses were allocated in intangible assets and property, plant and equipment, and in the case of Monitoring, Sensoring and Radars CGU, the loss was also allocated in the goodwill recognized. Impairment losses identified and recognized are consequences of changes in market conditions, analysis of potential customers and changes in industry forecasts of each impaired aircraft model. (i) Key assumptions of impairment test Management determined the gross margin based on its expectations of market development, forecast and conditions for each CGU. The weighted average growth rates used are consistent with the forecasts included in industry reports and in the Company’s strategic business plan approved by the Board of Directors. Estimated future cash flows were discounted using the weighted average capital cost rate (WACC), which is reconciled to an estimated discount pre-tax There are no other CGUs at risk of impairment losses on December 31, 2018 and 2017, except for those mentioned before. |
Trade accounts payable
Trade accounts payable | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Trade accounts payable | 18. Trade accounts payable 12.31.2018 12.31.2017 Foreign suppliers 574.0 545.4 Risk partners (i) 200.2 162.0 Domestic suppliers 117.9 117.3 892.1 824.7 (i) The Company’s risk-sharing suppliers/partners develop and produce significant aircraft components, including engines, hydraulic components, avionics, wings, tail sections, interior components and fuselage parts. Certain contracts between the Company and these risk-sharing suppliers/partners are long-term and include deferral of payments for components and systems for a negotiated term after delivery. Once the risk-sharing suppliers/partners have been selected and the aircraft development and production program has commenced, changing suppliers is more challenging. For example, in the case of engines, the aircraft is specially designed to accommodate a given component, which cannot be easily replaced by another supplier without incurring delays and significant additional expense. This dependence makes the Company vulnerable to the performance, quality and financial position of its risk-sharing suppliers/partners. |
Loans and financing
Loans and financing | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Loans and financing | 19. Loans and financing Currency Contractual interest rate - % Effective interest rate - % Maturity 12.31.2018 12.31.2017 Other currencies: 5.05% to 6.38% 5.05% to 7.42% 2027 (i) 2,941.8 2,934.1 0.63% to 5.37% 0.63% to 5.37% 2021 124.1 220.6 Working capital US$ Libor 6M + 1.35% to 2.60% Libor 6M + 1.35% to 2.60% 2027 219.8 119.1 Libor 3M + 2.25% Libor 3M + 2.25% 2026 — 220.20 Euro 1.00% to 3.37% 1.00% to 3.37% 2026 19.6 14.0 Advances on foreign exchange contracts US$ 4.65% 4.65% 2018 — 3.1 1.04% to 1.10% 1.04% to 1.10% 2035 Property, plant and equipment US$ Libor 1M + 2.44% to 2.50% Libor 1M + 2.44% to 2.50% 2037 55.8 58.1 3,361.1 3,569.2 In local currency: 3.50% to 4.50% 3.50% to 4.50% 2023 Project development R$ TJLP + 1.92% to 5.00% TJLP + 1.92% to 5.00% 2022 248.0 396.0 Export Credit Note R$ 10.85% a 11.00% 10.85% a 11.00% 2019 38.5 233.1 286.5 629.1 Total 3,647.6 4,198.3 Current portion 179.3 388.9 Non-current 3,468.4 3,809.6 (i) Bonus Issue Guaranteed - Bonds In October 2009, Embraer Overseas Limited issued US$ 500.0 thousand in guaranteed notes at 6.375% p.a., due on January 15, 2020. The operations are fully and unconditionally guaranteed by the Parent Company. Because Embraer Overseas Limited is a wholly owned subsidiary of Embraer S.A., whose objective is to perform financial operations. Between August and September 2013, through its subsidiary Embraer Overseas Limited, Embraer S.A. made an offer to exchange existing bonds maturing in 2017 (settled in January 2017) and 2020 for “New Notes” maturing in 2023. In the case of bonds maturing in 2017 the exchange offer resulted in US$ 146.4 of the aggregate principal of existing notes and US$ 337.2 of the aggregate principal of the 2020 Notes, representing approximately 54.95% of the Notes exchanged. The total of the exchange offer, taking into account the effects of the exchange price on the negotiations and the total New Notes issued closed at approximately US$ 540.5 in principal at a rate of 5.696% p.a., maturing on September 16, 2023. The operations are fully and unconditionally guaranteed by the Parent Company. In June 15, 2012, Embraer S.A. raised funds by issuing guaranteed notes, maturing on June 15, 2022, through an overseas offer of US$ 500.0 at a rate of 5.15% p.a. In June 2015, the Company´s wholly-owned finance subsidiary Embraer Netherlands Finance B.V, which only performs financial operations, issued US$ 1,000 in Guaranteed Notes at 5.05% p.a., due on June 15, 2025, in an offering subsequently registered with the SEC. This operation is fully and unconditionally guaranteed by the Parent Company. Because Embraer Netherlands Finance B.V is a wholly owned subsidiary of Embraer S.A., whose objective is to perform financial operations, the transactions made by it are presented as third party transactions in the Parent Company Financial Statements. In February 2017, Embraer Netherlands Finance B.V., Embraer S.A. subsidiary, issued a offering registered with the SEC of US$ 750.0 with an nominal interest rate of 5.40% p.a. maturing February 1, 2017. This operation is fully and unconditionally guaranteed by the Parent Company. Because Embraer Netherlands Finance B.V. is a wholly owned subsidiary of Embraer S.A., whose objective is to perform financial operations, the transactions made by it are presented as third party transactions in the Parent Company Financial Statements. As of December 31, 2018, the movement and maturities of the long-term financing agreements are as follows: 12.31.2018 12.31.2017 12.31.2016 Opening balance 3,584.4 3,704.4 4,229.9 Principal addition 124.0 940.0 620.5 Interest addition 218.0 192.7 195.7 Principal payment (596.3 ) (521.3 ) (559.7 ) Interest payment (212.7 ) (186.4 ) (175.0 ) Foreing exchange 530.2 68.9 (551.5 ) Total 3,647.6 4,198.3 3,759.9 As of December 31, 2018, the maturity schedules of the long-term financing are: Year 2020 237.0 2021 287.5 2022 519.5 2023 520.8 After 2023 1,903.6 3,468.4 19.1 Interest and guarantees As of December 31, 2018, loans denominated in US dollars (91,6% of the total) are mainly subject to fixed interest rates. The weighted average rate was 5.27% p.a. (5,18% p.a. at December 31, 2017). As of December 31, 2018, loans denominated in Reais (7,9% of the total) are subject to fixed interest rates or interest based on the Brazilian Long-term Interest Rate (“TJLP”) and CDI (Interbank Deposit Certificate). The weighted average rate at December 31, 2018 was 2.47% p.a. (3.72% p.a. at December 31, 2017). As of December 31, 2018, financing in Euros (0.5% of the total) had a rate of 1.32% on December 31, 2017. Real estate, machinery, equipment, commercial pledges and bank guarantees totaling US$ 339.4 as of December 31, 2018 (US$ 441.1 as of December 31, 2017) were provided as collateral for loans. 19.2 Restrictive clauses The long-term financing agreements are subject to restrictive clauses, consistent with normal market practices, which establish control over the degree of leverage through the ratio of total consolidated indebtedness x EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization, as defined), as well as limits for debt service cover based on EBITDA x net financial expense. Agreements also include customary restrictions on the creation of new encumbrances on assets, significant changes in control of the Company, sale of assets. As of December 31, 2018, the Company was in compliance with all the restrictive clauses. |
Other payables
Other payables | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Other payables | 20. Other payables 12.31.2018 12.31.2017 Other accounts payable (i) 114.6 112.0 Provisions related to payroll (ii) 92.8 108.6 Provision for employee profit sharing 34.3 29.8 Mutual with jointly controlled operation 23.2 19.7 Contractual obligations (iii) 17.5 16.9 Long-term incentive (iv) 16.9 9.9 Commission payable 10.9 10.6 Insurance 6.2 5.0 Brazilian air force 0.6 1.2 317.0 313.7 Current portion 288.4 292.2 Non-current 28.6 21.5 (i) Represents a provision for expenses already incurred as of the date of the balance sheet and for which payments are made during the following month. (ii) Refers to employee related obligations recorded in the financial statements; (iii) Substantially represents amounts recorded regarding maintenance costs of aircraft leased through operating leases and contractually agreed upon commitments for the sale of new aircraft or the expiration of residual financial guarantees; (iv) Refers to the Long-Term Incentive (ILP) granted to Company employees in the form of phantom shares, as described in Note 28—Share-based Remuneration. |
Taxes and payroll charges payab
Taxes and payroll charges payable | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Taxes and payroll charges payable | 21. Taxes and payroll charges payable 12.31.2018 12.31.2017 INSS (social security contribution) (i) 105.2 84.0 IRRF (withholding tax) 11.8 24.2 PIS and COFINS (ii) 1.6 4.2 Taxes refinancing program 1.1 15.0 IPI (manufacturing tax) 0.3 1.1 FGTS (government employee severance indemnity fund) 0.2 5.6 Others 6.4 6.8 126.6 140.9 Current portion 68.4 70.7 Non-current 58.2 70.2 The Company is challenging, through both administrative and judicial proceedings, the constitutionality of the tax calculation base and its expansion, as well as the rate increase of certain taxes, social contributions and charges, with the aim of ensuring its right to withhold payment or recover amounts paid in previous years. By means of such administrative and judicial proceedings, the Company has obtained injunctions and similar measures to suspend payment or offset payment of taxes and social contributions and charges. Provisions have been recorded for taxes not paid, as a result of preliminary legal decisions, and are updated based on the SELIC interest rate, pending a final and definitive decision. In some cases the Company maintains judicial deposit for the continuity of the judicial proceedings. (i) Corresponds substantially to: • The increase in the work-related accident insurance (“SAT”) rate. The Company is challenging the legality of the levy and absence of technical criteria for such rate since 1995. The amount involved is US$ 47.7 as of December 31, 2018 (US$ 54.6 as of December 31, 2017). • Additionally, in February, 2009, the Company filed a suit contesting the payment of social security on paid notice of dismissal and other indemnity payments. In October 2015 the Company obtained partial success in the dispute in relation to the employer’s portion of the Social Security on the paid notice, and therefore reduced the amount of the provision by US$ 2.5. Currently the remaining amount involved in the dispute in respect of the notice established in the collective agreement is US$ 10.0 as of December 31, 2018 and US$ 11.4 at December 31, 2017. • The Company obtained an injunction guaranteeing the right to not collect social security contributions according to the system established by Law 13,670 / 2018 in 2018 (maintenance of the Social Security Contribution on Gross Revenue—CPRB until 12/31/2018). The amount involved in the discussion is US$ 31.6 as of December 31, 2018. (ii) Refers to: • Contributions to the PIS/PASEP fund (Social Integration Program / Public Servant Fund). The dispute involving the calculation base for the non-cumulative • Another lawsuit discusses the inclusion of the exchange rate variation in the PIS / PASEP calculation basis and was judged favorably, which is why the provision in question was written off and the process will no longer be informed (US$ 3.3 as of December 31, 2017). With respect to the legal discussions mentioned above for certain taxes exposures, the liabilities will be recognized until there is a final outcome and no further appeals can be made. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Income taxes | 22. Income taxes As the tax basis for the majority of the Company’s assets and liabilities is maintained in reais and the accounting basis is measured in US dollars (functional currency), the fluctuations in the exchange rate significantly impacted the tax basis and, in turn, the deferred income tax expense (benefit). Based on the expectation of future taxable income, the Company recorded deferred tax assets based on tax losses carryforwards. Credits relating to temporary differences on non-deductible 22.1 Deferred income tax and social contribution The components of deferred tax assets and liabilities are as follows: 12.31.2018 12.31.2017 01.01.2017 (Restated) (Restated) Temporarily non-deductible 39.7 (76.1 ) (102.7 ) Tax loss carryforwards 0.5 4.5 28.3 Functional currency effect of the non monetary assets (323.4 ) (206.0 ) (201.0 ) Gains not realized from sales of the Company to subsidiairies 22.7 15.4 16.4 Effect of differences by fixed asset 7.5 (8.1 ) (31.2 ) Differences between basis: account x tax 20.6 25.7 36.6 Deferred tax assets (liabilities), net (232.4 ) (244.6 ) (253.6 ) Total deferred tax asset 21.6 13.4 11.6 Total deferred tax liability (254.0 ) (258.0 ) (265.2 ) Changes in deferred income tax that affected profit and loss were as follows: From the Other Total At January 01, 2016 (Restated) (429.9 ) 32.5 (397.4 ) Temporarily non-deductible (99.9 ) — (99.9 ) Tax loss carryforwards 7.8 — 7.8 Functional currency effect of the non monetary assets 206.1 — 206.1 Provision Gain not realized at sales from Controlling company to subsidiairies (3.5 ) — (3.5 ) Effect of differences by fixed asset 4.9 — 4.9 Differences between basis: account x tax 22.1 6.3 28.4 At December 31, 2016 (Restated) (292.4 ) 38.8 (253.6 ) Temporarily non-deductible 26.6 — 26.6 Tax loss carryforwards (23.8 ) — (23.8 ) Functional currency effect of the non monetary assets (5.0 ) — (5.0 ) Provision Gain not realized at sales from Controlling company to subsidiairies (1.0 ) — (1.0 ) Effect of differences by fixed asset 23.0 — 23.0 Differences between basis: account x tax (6.9 ) (3.9 ) (10.8 ) At December 31, 2017 (Restated) (279.5 ) 34.9 (244.6 ) Temporarily non-deductible 115.8 — 115.8 Tax loss carryforwards (4.0 ) — (4.0 ) Functional currency effect of the non monetary assets (117.4 ) — (117.4 ) Gains not realized from sales of Parent Company to subsidiairies 7.3 — 7.3 Effect of differences by fixed asset 15.6 — 15.6 Differences between basis: account x tax 3.9 (9.0 ) (5.1 ) At December 31, 2018 (258.3 ) 25.9 (232.4 ) 22.2 Reconciliation of income tax expense 12.31.2018 12.31.2017 12.31.2016 (Restated) (Restated) Profit (loss) before taxation (136.2 ) 307.9 180.6 Income tax and social contribution expense at the nominal Brazilian enacted tax rate—34% 46.3 (104.7 ) (61.4 ) Tax on profits of overseas subsidiaries (33.2 ) (9.8 ) (4.0 ) Functional currency effect of the non monetary assets (117.4 ) (5.0 ) 206.1 Research and development tax incentives 27.7 43.8 36.5 Interest on own capital 3.0 16.9 6.1 Fiscal credits (recognized and non recognized) (26.0 ) 19.3 (30.4 ) Tax rate diference 30.9 5.3 (0.7 ) Other difference between IFRS and fiscal basis 41.4 3.3 (90.9 ) Other (7.7 ) 3.0 (61.6 ) (81.3 ) 76.8 61.1 Income tax and social contribution income (expense) benefit as reported (35.0 ) (27.9 ) (0.3 ) Current income tax and social contribution (expense) benefit as reported (56.2 ) (40.8 ) (137.8 ) Deferred income tax and social contribution income (expense) benefit as reported 21.2 12.9 137.5 The effective average income tax benefit (expense) rate for the year ended December 31, 2018 was 25.7% (9.1% as of December 31, 2017). The deviation between the effective rate year over year refers to the effect of difference between tax basis (Brazilian Reais) and accounting basis of non-monetary |
Financial Guarantees and Residu
Financial Guarantees and Residual Value Guarantees | 12 Months Ended |
Dec. 31, 2018 | |
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Financial Guarantees and Residual Value Guarantees | 23. Financial Guarantees and Residual Value Guarantees 12.31.2018 12.31.2017 Financial guarantee of residual value 125.4 108.9 Accounts payable (i) 15.1 30.8 Financial guarantee 11.6 17.1 152.1 156.8 Current portion 51.0 22.2 Non-current 101.1 134.6 The movement on the financial guarantees and residual guarantees is shown below: Financial Financial Accounts Additional Total At January 01, 2016 40.1 94.7 57.4 100.9 293.1 Additions 0.1 — 11.9 — 12.0 Interest Additions — — 1.7 — 1.7 Disposals (6.6 ) — (95.6 ) — (102.2 ) Reversals — — — (10.4 ) (10.4 ) Reclassifications — — 90.5 (90.5 ) — Market value — 27.5 — — 27.5 Guarantee amortization (10.9 ) — — — (10.9 ) At December 31, 2016 22.7 122.2 65.9 — 210.8 Additions 1,2 — 3.7 — 4.9 Interest Additions — — 2.0 — 2.0 Disposals — — (40.8 ) — (40.8 ) Market value — (13.3 ) — — (13.3 ) Guarantee amortization (6.8 ) — — — (6.8 ) At December 31, 2017 17.1 108.9 30.8 — 156.8 Interest Additions — — 1.5 — 1.5 Disposals — — (17.2 ) — (17.2 ) Market value — 16.5 — — 16.5 Guarantee amortization (5.5 ) — — — (5.5 ) At December 31, 2018 11.6 125.4 15.1 — 152.1 (i) Accounts payable and additional provision: • Republic Airways Holdings—Refer to liabilities assumed as part of financial guarantees granted to the customer as a result of his filing for bankruptcy (Chapter 11) on February, 2016, which is partially concluded as of December 31, 2018. |
Provisions and contingent liabi
Provisions and contingent liabilities | 12 Months Ended |
Dec. 31, 2018 | |
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Provisions and contingent liabilities | 24. Provisions and contingent liabilities 24.1 Provisions 12.31.2018 12.31.2017 01.01.2017 (Restated) (Restated) Product warranties (i) 98.0 101.1 94.1 Provisions for labor, taxes and civil (ii) 58.4 54.2 93.1 Taxes 31.4 41.8 28.5 Post retirement benefits 31.7 36.1 46.0 Environmental provision 2.4 1.8 1.0 Voluntary redundancy scheme — — 25.3 Other 20.5 25.3 14.8 242.4 260.3 302.8 Current portion 116.9 124.1 123.8 Non-current 125.5 136.2 179.0 (i) Recorded to cover product-related expenditure, including warranties and contractual obligations to implement improvements to aircraft delivered in order to meet performance targets. (ii) Provisions for labor, tax or civil contingencies, as shown in the table below Note 24.1.1. Change in provision: Product Provisions Post retirement Taxes Voluntary Environment Other Total At January 01, 2016 (Restated) 95.7 49.9 26.8 16.9 — 1.7 7.7 198.7 Additions 51.9 43.3 11.2 12.0 118.0 1.0 17.0 254.4 Interest — 4.3 3.3 — — — — 7.6 Used/payments (31.7 ) (2.7 ) — — (77.0 ) — (8.1 ) (119.5 ) Reversals (20.6 ) (5.5 ) — — (15.0 ) (2.0 ) — (43.1 ) Translation adjustments (1.2 ) 3.8 4.7 (0.4 ) (0.7 ) 0.3 (1.8 ) 4.7 At December 31, 2016 (Restated) 94.1 93.10 46.0 28.5 25.3 1.0 14.8 302.8 Additions 42.5 12.7 3.2 14.0 7.0 3.0 7.1 89.5 Interest — 12.5 4.4 — — — — 16.9 Used/payments (26.8 ) (61.1 ) (15.3 ) — (31.0 ) — — (134.2 ) Reversals (8.8 ) (2.3 ) (1.4 ) — (1.0 ) (2.0 ) — (15.5 ) Translation adjustments 0.1 (0.7 ) (0.8 ) (0.7 ) (0.3 ) (0.2 ) 3.4 0.8 At December 31, 2017 (Restated) 101.1 54.2 36.1 41.8 — 1.8 25.3 260.3 Additions 38.1 24.6 0.6 0.8 — 2.0 8.0 74.1 Interest — 5.1 2.9 — — — — 8.0 Used/payments (24.9 ) (6.4 ) (3.3 ) (11.2 ) — — — (45.8 ) Reversals (16.2 ) (11.8 ) (0.2 ) — — (1.0 ) — (29.2 ) Translation adjustments (0.1 ) (7.3 ) (4.4 ) — — (0.4 ) (12.8 ) (25.0 ) At December 31, 2018 98.0 58.4 31.7 31.4 — 2.4 20.5 242.4 24.1.1 Labor, tax and civil provisions 12.31.2018 12.31.2017 Tax related IRPJ (i) 9.2 10.1 PIS and COFINS 5.3 6.8 Social security contributions (ii) 2.4 2.8 Import taxes (iii) 0.8 0.9 FUNDAF 0.1 — Others 0.2 0.4 18.0 21.0 Labor related Plurimas 461/1379 (iv) 10.0 11.3 Reintegration (v) 7.0 5.1 Overtime (vi) 6.0 1.7 Dangerousness (vii) 1.0 0.1 Indemnity (viii) 3.1 2.3 Third parties 0.5 0.9 Others 12.4 11.6 40.0 33.0 Civil related Indemnity (ix) 0.4 0.2 0.4 0.2 58.4 54.2 Current portion 20.7 21.5 Non-current 37.7 32.7 (i) The Company has obtained injunction to suspend collection of withholding tax related to values transferred overseas. (ii) The Company was notified by the authorities for failing to withhold social security contributions from service providers. These lawsuits are at the second court level. (iii) Deficiency and Penalty Notices issued against the Company involving the drawback regime, disputing possible differences in relation to the tax classification of certain products and is at the analysis stage in the Federal Supreme Court—STJ ( Supremo Tribunal de Justiça (iv) Refers to claims for backdated salary increases and productivity payments, brought by former employees. (v) Suits brought by former employees claiming reinstatement with the Company for various reasons. (vi) Refer to requirements for payment of alleged differences in relation to overtime. (vii) Are requirements that seek the recognition of activity in hazardous condition. (viii) Indemnity claims in connection with alleged work-related accidents, pain and suffering, etc. (ix) Other indemnity claims brought by parties that had some kind of legal relationship with the Company. The tax, labor and civil provisions are recorded in accordance with the Company’s accounting policy and the amounts shown here represent the estimated amounts that the Company’s legal department and its external counsel expect the Company to have to disburse to settle the lawsuits. 24.2 Contingent liabilities Contingent liabilities are amounts classified as possible losses, in accordance with the Company’s accounting policy, in the opinion of the Company’s legal department, supported by its external counsel. When the contingent liability arises from the same set of circumstances as an existing provision, the type of the corresponding provision is indicated at the end of the description. The Company’s main contingent liabilities are listed below: • The Company has a legal dispute related to the ISSQN rate in the amount of US$ 55.9 on December 31, 2018. • The Company is involved in a legal dispute related to tax credits paid by its subsidiaries abroad amounting to US$ 15.5 as of December 31, 2018 (US$ 6.6 as of December 31, 2017). • The Company has contingent liabilities amounting to US$ 36.4 as of December 31, 2018 related to labor claims (US$ 28.0 as of December 31, 2017). 24.3 SEC/DOJ and Brazilian public prosecutor’s investigations • In October 2016, the Company finalized definitive agreements with the United States and Brazilian authorities for the settlement of allegations for non-compliance Under the final agreements with the DOJ ( Department of Justice Securities and Exchange Commission • Payment of US$ 98.2 to the SEC (of which US$ 20.0 or R$ 64.0 due to the Brazilian Securities and Exchange Commission (CVM or Comissão de Valores Mobiliários Ministério Público Federal Termo de Compromisso de Ajuste de Conduta • Payment of US$ 107.3 to the DOJ as a penalty for one count of conspiracy to violate the anti-bribery and books and records provisions of the FCPA ( Foreign Corrupt Practices Act • Under an agreement with the DOJ on conditional deferral of the Deferred Prosecution Agreement (“DPA”) against the Company, it agreed that liability for the recognized facts will be deferred for 03 (three) years, after which period the charges will be dismissed if the Company does not violate the terms of the DPA.; and • To contract external and independent monitoring for a period of 03 (three) years. In February 2017, the United States authorities appointed a monitor as required under the above-mentioned definitive agreements with the United States authorities. As expected, the monitor annually presents reports containing certain observations and recommendations to further improve the Company’s compliance program, including the review or creation of anti-corruption and compliance related policies and procedures. As a consequence of the definitive agreements with the United States and Brazilian authorities, Embraer and the Attorney General’s Office of the Dominican Republic executed a collaboration agreement on July 28, 2018. Under the terms of the agreement, the Company undertook to cooperate with the investigation of facts related to the transaction occurred in that country and paid US$ 7.04 to the Dominican State. Related proceedings and other developments are ongoing and could result in additional fines that may be substantial and possibly other sanctions and adverse consequences, which may be substantial. The Company believes that there is no adequate basis for estimating accruals or quantifying possible contingencies related to these matters. • Class Action: |
Post-retirement benefits
Post-retirement benefits | 12 Months Ended |
Dec. 31, 2018 | |
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Post-retirement benefits | 25. Post-retirement benefits 12.31.2018 12.31.2017 Medical benefits plan Brazil 27.9 31.8 Medical benefits plan subsidiaries abroad 3.8 4.3 Post-retirement benefits 31.7 36.1 25.1 Post-retirement healthcare benefits provided by the Company in Brazil The Company provided healthcare plan for employees, which based on its conditions, is classified as a post-employment benefit. Under this healthcare plan, employees who retire from the Company have the option of remaining in the plan, contributing the full amount charged by the insurance company. However, due to certain rules for increases under Brazilian law, there could be times the contribution made by the retired employees is insufficient to cover the medical plan costs, which would represent exposure for the Company. 25.2 Post-retirement healthcare benefits provided by subsidiaries abroad Embraer Aircraft Holding sponsors a post-retirement healthcare plan for employees hired up to 2007. The expected costs of pension and provision of post-employment medical benefit for the individual employees and their dependents are provided on an accrual basis based on actuarial studies and the calculation is reviewed annually. 25.3 Defined contribution pension plan The Company and certain subsidiaries sponsor a defined contribution pension plan for their employees, participation in which is optional. The Company’s contributions to the plan for the years ended December 31, 2018 and 2017 were US$ 14.1 and US$ 22.2 respectively. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
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Financial Instruments | 26. Financial Instruments 26.1 Financial instruments by category 12.31.2018 Note Amortised Fair value through Fair value through Total Assets Cash and cash equivalents 5 1,280.9 — — 1,280.9 Financial investments 6 48.8 507.8 1,370.3 1,926.9 Guarantee Deposits 10 349.7 — — 349.7 Collateralized accounts receivable 9 235.9 — — 235.9 Contract assets 358.0 — — 358.0 Trade accounts receivable, net 7 318.0 — — 318.0 Customer and commercial financing 11.7 — — 11.7 Derivative financial instruments 8 — — 9.5 9.5 Other Assets 66.2 — — 66.2 2,669.2 507.8 1,379.8 4,556.8 Liabilities Loans and financing 19 3,647.7 — — 3,647.7 Trade accounts payable and others liabilities 1,550.5 — — 1,550.5 Financial guarantee and of residual value 23 15.0 — 125.4 140.4 Derivative financial instruments 8 — — 8.1 8.1 5,213.2 — 133.5 5,346.7 12.31.2017 (Restated) Note Amortised Fair value through Fair value through Total Assets Cash and cash equivalents 5 1,270.8 — — 1,270.8 Financial investments 6 50.5 1,307.6 1,259.2 2,617.3 Guarantee Deposits 10 393.9 — — 393.9 Collateralized accounts receivable 9 288.7 — — 288.7 Contract assets 447.5 — — 447.5 Trade accounts receivable, net 7 297.0 — — 297.0 Customer and commercial financing 16.4 — — 16.4 Derivative financial instruments 8 — — 34.3 34.3 Other Assets 82.2 — — 82.2 2,847.0 1,307.6 1,293.5 5,448.1 Liabilities Loans and financing 19 4,198.5 — — 4,198.5 Trade accounts payable and others liabilities 1,502.5 — — 1,502.5 Financial guarantee and residual value 23 30.7 — 108.9 139.6 Derivative financial instruments 8 — — 8.9 8.9 5,731.7 — 117.8 5,849.5 26.2 Fair value of financial instruments The fair value of the Company’s financial assets and liabilities was determined using available market information and appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to generate estimates of fair values. Consequently, the estimates presented below are not necessarily indicative of the amounts that might be realized in a current market exchange. The use of different assumptions and/or methodologies could have a material effect on the estimated realizable values. The carrying amounts of cash and cash equivalents, trade accounts receivable, other financial assets and financial liabilities, except for loans and financing, are approximately their fair values. The following methods were used to estimate the fair value of each further category of financial instrument for which it is possible to estimate the fair value. Financial investments – The fair value of securities is estimated by the discounted cash flow methodology. For private securities (corporate bonds), it is applied the market’s unit price of latest trade date at the end of reporting period multiplied by the quantity acquiried by the Company. Loans and financing – The fair value of guaranteed notes (bonds) is the market’s unit price of latest trade date at the end of reporting period multiplied by the quantity issued. For the other loans and financing, the fair value is based on the value of the contractual cash flows. The discount rate used is based in the market interest rate to contract a new transaction in similar terms, or in its absence, in the future market yield curve for the cash flows of each liability. The Company considers “fair value” to be the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. The Company primarily applies the market approach for recurring fair value measurements and endeavors to utilize the best available information. Accordingly, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The Company is able to classify fair value balances based on the observable inputs. A fair value hierarchy is used to prioritize the inputs used to measure fair value. The three Levels of the fair value hierarchy are as follows: • Level 1 • Level 2 non-exchange over-the-counter • Level 3 The following table lists the Company’s financial assets and liabilities by level within the fair value hierarchy. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. In 2018 there was no change in the methods used to assess the fair value of financial instruments, as well as there were no changes or transfers of instruments level. 12.31.2018 Note Level 2 Level 3 Total Fair value of the other Fair value Book value Assets Cash and cash equivalents 5 — — — 1,280.9 1,280.9 1,280.9 Financial investments 6 1,818.2 59.9 1,878.1 48.8 1,926.1 1,926.9 Guarantee Deposits 10 — — — 349.7 349.7 349.7 Collateralized accounts receivable — — — 235.9 235.9 235.9 Contract assets — — — 358.0 358.0 358.0 Trade accounts receivable, net 7 — — — 318.0 318.0 318.0 Customer and commercial financing — — — 11.7 11.7 11.7 Derivative financial instruments 8 9.5 — 9.5 — 9.5 9.5 Other Assets — — — 66.2 66.2 66.2 1,827.7 59.9 1,887.6 2,669.2 4,556.0 4,556.8 Liabilities Loans and financing — — — 3,647.7 3,756.8 3,647.7 Trade accounts payable and others liabilities 19 — — — 1,550.5 1,550.5 1,550.5 Financial guarantee and of residual value — 125.4 125.4 15.0 140.4 140.4 Derivative financial instruments 19 8.1 — 8.1 — 8.1 8.1 8.1 125.4 133.5 5,213.2 5,455.8 5,346.7 12.31.2017 (Restated) Note Level 2 Level 3 Total Fair value of the other Fair value Book value Assets Cash and cash equivalents 5 — — — 1,270.8 1,270.8 1,270.8 Financial investments 6 2,507.2 59.6 2,566.8 50.4 2,617.3 2,617.3 Guarantee Deposits 10 — — — 393.9 393.9 393.9 Collateralized accounts receivable — — — 288.7 288.7 288.7 Contract assets — — — 447.5 447.5 447.5 Trade accounts receivable, net 7 — — — 297.0 297.0 297.0 Customer and commercial financing — — — 16.4 16.4 16.4 Derivative financial instruments 8 34.3 — 34.3 — 34.3 34.3 Other Assets — — — 82.2 82.2 82.2 2,541.5 59.6 2,601.1 2,846.9 5,448.1 5,448.1 Liabilities Loans and financing 19 — — — 4,198.5 4,408.6 4,198.5 Trade accounts payable and others liabilities — — — 1,502.5 1,502.5 1,502.5 Financial guarantee and of residual value 23 — 108.9 108.9 30.7 139.6 139.6 Derivative financial instruments 8 8.9 — 8.9 — 8.9 8.9 8.9 108.9 117.8 5,731.7 6,059.6 5,849.5 Fair value of financial Assets Liabilities At 12.31.2016 (Restated) 35.0 122.2 Adding Shares 58.8 — Disposal Claim (34.8 ) — Market value 0.6 (13.3 ) At 12.31.2017 (Restated) 59.6 108.9 Market value 0.3 16.5 At 12.31.2018 59.9 125.4 Changes in Level 3 financial instruments are recognized in the consolidated statements of income under the caption of financial income (expense), net. 26.3 Financial risk management policy The Company has and follows a risk management policy, which involves the diversification of transactions and counterparties, with the objective of mapping the risks related to the financial transactions, as well as the operational directives related to these financial transactions. The policy provides for regular monitoring and management of the nature and general situation of the financial risks in order to assess the results and the financial impact on cash flows. The credit limits and risk rating of the counterparties are also reviewed periodically. The Company’s risk management policy is part of the financial management policy established by the Executive Directors and approved by to the Board of Directors, and provides for monitoring by a Financial Management Committee. Under this policy, the market risks are mitigated when there is no counterparty in the Company’s operations and when it is considered necessary to support the corporate strategy. The Company’s internal control procedures provide for consolidated monitoring and supervision of the financial results and of the impact on cash flows. The Financial Management Committee assists the Financial Department in examining and reviewing information in relation to the economic scenario and its potential impact on the Company’s operations, including significant risk management policies, procedures and practices. The financial risk management policy includes the use of derivative financial instruments to mitigate the effects of interest rate fluctuations and to reduce the exposure to exchange rate risk. The use of these instruments for speculative purposes is forbidden. 26.3.1 Capital risk management The Company uses capital management to ensure the continuity of its investment program and offer a return to its shareholders and benefits to its stakeholders and also to maintain an optimized capital structure in order to reduce financial costs. The Company may review its dividends payment policy, pay back capital to the shareholders, issue new shares or sell assets in order to maintain or adjust its capital structure (to reduce indebtedness, for instance). Liquidity and the leverage level are constantly monitored in order to mitigate refinance risk and maximize the return to the shareholders. The ratio between liquidity and the return to the shareholders may be changed pursuant to the assessment of the Board of Directors. The Company’s capital management may be modified to adjust to changes in the economic scenario or strategic repositioning of the Company. As of December 31, 2018, cash and cash equivalents and financial investments were US$ 439.2 lower than the Company’s financial indebtedness (US$ 310.8 lower as of December 31, 2017). Of the total financial indebtedness as of December 31, 2018, 4.9% was short-term (9.3% as of December 31, 2017) and the weighted average term was equivalent to 5.5 years as of December 31, 2018 (6.0 years as of December 31, 2017). 26.3.2 Credit risk Credit risk is the risk of a transaction negotiated between counterparties not meeting an obligation established in a financial instrument, or in negotiation of sales to customers, leading to a financial loss. The Company is exposed to credit risk in its operational activities, cash held in banks and other investments in financial instruments held in financial institutions. • Cash and cash equivalents and financial investments The credit risk of cash and cash equivalents and financial investments is managed by the Company’s Financial Department in compliance with the financial and risk management policy. The counterparty credit limit is reviewed on a daily basis in order to minimize concentration of risks and mitigate financial losses due to the bankruptcy of a counterparty, as well as the transactions are performed with counterparties rated as investment grade by rating agencies (Fitch, Moody’s and Standard and Poor’s). The Financial Management Committee assists the Financial Department in examining and reviewing transactions with counterparties. As of December 31, 2018 and 2017, all financial investments measured as at amortized cost and as at FVOCI are considered low credit risk and are in compliance with the Company’s financial and risk management policy. The result of applying the expected credit losses model of IFRS 9 for cash and cash equivalents and financial investments was immaterial. • Trade accounts receivable and contract assets with customers The Company may incur losses on amounts receivable from sales of spare parts and services to customers. To reduce the risk, Management performs an internal credit risk analysis which takes into account qualitative factors, such as past experiences, and quantitative factors, when applicable, related to external financial information. If the risk increases and/ or the customer present overdue amounts, the supply of spare parts and services can be stopped by the Company, which impacts its fleet operations. The Company applies IFRS 9 simplified approach to the measurement of expected credit losses on trade accounts receivable balances (Note 2.2.6). In order to calculate the expected credit losses, receivables are grouped by the period the items are outstanding, and an expected loss factor is applied based on actual credit loss experiences of each past period, which gradually increases as long as the receivable remains outstanding in portfolio. For receivables not overdue, the expected credit loss is calculated using past 10 years’ experience of losses and monitoring of forward trends. As of December 31, 2018, the initial expected loss factor under the methodology is 1.9% (1.8% as of December 31, 2017). Contract assets refer to contracts in progress that have not been billed, mainly related to development contracts recognized over time in the Defense & Security segment. The credit risk characteristic of the Company’s customers is different for the Defense & Security segment, since the counterparties refer only to government entities and agencies. The risk in this case is associated with the sovereign risk of each country, especially Brazil, as well as with the continuity of strategic projects under development, for which the Company usually has the enforceable right to receive for the performance completed to date. The Company historically has not presented losses in the trade accounts receivable and contract assets balances with these counterparties. Trade accounts receivable and contract assets are written off when there is no reasonable expectation of recovery. Indications include, among others, the inability of the debtor to participate in a plan to renegotiate its debt or possible legal actions have been exhausted. • Other financial assets Other financial assets measured as at amortized cost includes: guarantee deposits, collateralized accounts receivable, customer financing, court-mandated escrow deposits and loan with joint operation. The result of the expected credit losses model set forth in IFRS 9 for other financial assets was immaterial. In addition, the Company has guarantees, such as guarantee deposits in financial institutions rated as investment grade, pledge assets or other contractual guarantees, which also mitigates the risk of financial loss in these assets. 26.3.3 Liquidity risk This is the risk of the Company not having sufficient funds to honor its financial commitments as a result of a mismatch of terms or volumes of estimated receipts and payments. Projections and assumptions are established to manage the liquidity of cash in U.S. dollars and reais, in accordance with the financial management policy, based on contracts for future disbursements and receipts, and monitored periodically by the Company. Accordingly, possible mismatches are detected well in advance allowing the Company to adopt mitigation measures to reduce risks and financial cost. The following table provides additional information related to undiscounted contractual obligations and commercial commitments and their respective maturities: Cash Flow Less than one One to three Three to five More than At December 31, 2018 Loans and financing 4,701.3 321.0 867.3 1,345.7 2,167.3 Trade accounts payable 892.1 892.1 — — — Recourse and non recourse debt 341.4 324.0 7.6 6.6 3.2 Financial guarantees 152.1 51.0 39.9 31.3 29.9 Other liabilities 227.3 5.4 92.2 95.3 34.4 Total 6,314.2 1,593.5 1,007.0 1,478.9 2,234.8 At December 31, 2017 (Restated) Loans and financing 5,400.7 491.6 784.9 1,220.2 2,904.0 Trade accounts payable 824.7 824.7 — — — Recourse and non recourse debt 364.1 17.6 332.7 8.0 5.8 Financial guarantees 156.8 22.2 52.5 31.1 51.0 Other liabilities 249.4 11.4 46.1 92.3 99.6 Total 6,995.7 1,367.5 1,216.2 1,351.6 3,060.4 The table above shows the outstanding principal and interest if applicable at the maturity dates. In the case of the fixed rate liabilities, interest expense was calculated based on the rate established in each debt contract. Interest expense on floating rate liabilities was calculated based on a market forecast for each period (e.g. LIBOR 6m - 12m). 26.3.4 Market risk a) Interest rate risk This risk arises from the possibility of the Company incurring losses on the fluctuation of floating interest rates, which might increase financial expenses of financial liabilities, and/ or decrease financial income of financial assets, as well as negatively impacting the fair value of financial assets measured as at fair value. The lines of the Consolidated Financial Statements most affected by interest rate risks are: • Cash, cash equivalents and financial investments – the Company policy for managing the risk of fluctuations in interest rates on financial investments is to measure market risk by the Value-At-Risk—VAR • Loans and financing – the Company monitors financial markets with the purpose of evaluate hedge structures (derivative transactions) in compliance with the financial and risk management policy to protect its exposure risks of volatility in foreign currency and interest rates. At December 31, 2018, the Company’s cash, cash equivalents, financial investments and loans and financing were indexed as follows: Without derivative effect Pre-fixed Post-fixed Total Amount % Amount % Amount % Cash, cash equivalents and financial investments 2,742.3 85.49 % 465.5 14.51 % 3,207.8 100.00 % Loans and financing 3,577.7 98.09 % 69.8 1.91 % 3,647.5 100.00 % With derivative effect Pre-fixed Post-fixed Total Amount % Amount % Amount % Cash, cash equivalents and financial investments 2,742.3 85.49 % 465.5 14.51 % 3,207.8 100.00 % Loans and financing 3,194.3 87.57 % 453.3 12.43 % 3,647.6 100.00 % At December 31, 2018, the Company’s cash equivalents and post -fixed financing were indexed as follows: Without derivative effect With derivative effect Amount % Amount % Cash equivalents and financial investments 465.4 100.00 % 465.5 100.00 % CDI 403.1 86.61 % 403.2 86.62 % Libor 62.3 13.39 % 62.3 13.38 % Loans and financing 69.9 100.00 % 453.4 100.00 % TJLP 1.9 2.72 % 1.9 0.42 % Libor 68.0 97.28 % 65.4 14.42 % CDI — 0.00 % 386.1 85.16 % b) Foreign exchange rate risk The functional currency of the Company and the majority of its subsidiaries is the US dollar (Nota 2.2.1). Consequently, the Company’s operations most exposed to foreign exchange gains/losses are those denominated in reais (labor costs, tax issues, local expenses, financial investments and loans and financing) as well as investments in subsidiaries in currencies other than the US dollar. Company policy for protection against foreign exchange risks on assets and liabilities is mainly based on seeking to maintain a balance between assets and liabilities indexed in each currency and management of foreign currency purchases and sales to ensure that, on realization of the transactions contracted, this natural hedge will occur. This policy minimizes the effect of exchange rate changes on assets and liabilities already contracted, but do not protect against the risk of fluctuations in future results due to appreciation or depreciation of the real that can, when measured in dollars, result in an increase or reduction in the portion of costs denominated in reais. Under certain market conditions, the Company may protect itself against potential future mismatches of expenses and revenues denominated in foreign currency, to minimize the effects of future exchange variations on the Company’s consolidated statements of income. Efforts to minimize the foreign exchange risk for rights and liabilities denominated in currencies other than the functional currency may involve transactions with derivatives, such as swaps, exchange options and Non-Deliverable At December 31, 2018, the Company had the following amounts of financial assets and liabilities denominated in several currencies: 12.31.2018 12.31.2017 12.31.2016 (Restated) (Restated) Loans and financing Brazilian reais 286.5 629.0 832.9 U.S. dollars 3,341.6 3,555.5 2,910.7 Euro 19.6 14.0 16.3 3,647.7 4,198.5 3,759.9 Trade accounts payable Brazilian reais 77.1 87.6 91.9 U.S. dollars 715.6 621.0 783.2 Euro 27.2 115.0 75.3 Other currencies 72.2 1.1 1.7 892.1 824.7 952.1 Total (1) 4,539.8 5,023.2 4,712.0 Cash and cash equivalents and financial investments Brazilian reais 406.5 750.2 1,180.0 U.S. dollars 2,746.9 2,979.2 1,838.3 Euro 47.7 97.5 127.1 Other currencies 6.8 61.2 44.8 3,207.9 3,888.1 3,190.2 Trade accounts receivable: Brazilian reais 10.7 30.8 143.4 U.S. dollars 274.2 154.1 187.7 Euro 33.1 106.1 5.6 Other currencies — 6.0 0.1 318.0 297.0 336.8 Total (2) 3,525.9 4,185.1 3,527.0 Net exposure (1 - 2): Brazilian reais (53.6 ) (64.4 ) (398.6 ) U.S. dollars 1,036.1 1,043.2 1,667.9 Euro (34.0 ) (74.6 ) (41.1 ) Other currencies 65.4 (66.1 ) (43.2 ) The Company has other financial assets and liabilities that are also influenced by foreign exchange variations that are not included in the table above. These are used to minimize exposure in the currencies presented. 26.4 Sensitivity analysis In order to present positive and negative variations of 25% and 50% in the risk variable considered, a sensitivity analysis of the financial instruments, including derivatives, is presented below describing the effects on the monetary and foreign exchange variations on the financial income and expense, as well as in the consolidated shareholders’ equity, determined on the balances recorded at December 31, 2018, in the event of such variations in the risk component. However, statistical simplifications were made in isolating the variability of the risk factors in question. Consequently, the following estimates do not necessarily represent the amounts that might be determined in future consolidated financial statements. The use of different hypotheses and/or methodologies could have a material effect on the estimates presented below. 26.4.1 Methodology Assuming that the balances remain constant, the Company calculates the interest and exchange variation differential for each of the projected scenarios. Evaluation of the amounts exposed to interest rate risk considers only the risks for the financial statement. Operations subject to prefixed interest rates were not included. The probable scenario is based on the possible change for each of the variables indicated, and positive and negative variations of 25% and 50% were applied to the rates in force as of the reporting date. In the sensitivity analysis of derivative contracts, positive and negative variations of 25% and 50% were applied to the market yield curve (B3) as of the reporting date. 26.4.2 Interest risk factor Additional variations in book balances (*) Risk factor Amounts -50% -25% Probable +25% +50% Cash equivalents and financial investments CDI 403.1 (12.6 ) (6.0 ) 0.6 7.2 13.8 Net impact CDI 403.1 (12.6 ) (6.0 ) 0.6 7.2 13.8 Cash equivalents and financial investments LIBOR 62.3 (0.9 ) (0.5 ) — 0.4 0.9 Loans and financing LIBOR (68.0 ) 1.0 0.5 — (0.5 ) (1.0 ) Net impact LIBOR (5.7 ) 0.1 — — (0.1 ) (0.1 ) Loans and financing TJLP (1.9 ) 0.1 — — — (0.1 ) Net impact TJLP (1.9 ) 0.1 — — — (0.1 ) Rates considered CDI 6.40 % 3.28 % 4.91 % 6.55 % 8.19 % 9.83 % Rates considered LIBOR 2.87 % 1.43 % 2.14 % 2.86 % 3.57 % 4.29 % Rates considered TJLP 6.56 % 3.49 % 5.24 % 6.98 % 8.73 % 10.47 % (*) The positive and negative variations of 25% and 50% were applied on the rates 26.4.3 Foreign exchange risk factor Additional variations in book balances (*) Risk factor Amounts -50% -25% Probable +25% +50% Assets 745.3 378.9 195.7 12.4 (170.8 ) (354.0 ) Cash, cash equivalents and financial investments R$ 528.4 268.6 138.7 8.8 (121.1 ) (251.0 ) Other assets R$ 216.9 110.3 57.0 3.6 (49.7 ) (103.0 ) Liabilities (79.7 ) (40.6 ) (20.9 ) (1.3 ) 18.2 37.9 Loans and financing R$ (286.5 ) (145.7 ) (75.2 ) (4.8 ) 65.6 136.1 Other liabilities R$ 206.8 105.1 54.3 3.5 (47.4 ) (98.2 ) Net impact 825.0 338.3 174.8 11.1 (152.6 ) (316.1 ) Exchange rate considered 3.8748 1.9050 2.8575 3.8100 4.7625 5.7150 (*) The positive and negative variations of 25% and 50% were applied on the rates 26.4.4 Derivative contracts Additional variations in book balances (*) Risk factor Amounts -50% -25% Probable +25% +50% Derivative Designated as Hedge Accounting Interest swap—fair value hedge CDI 6.5 4.1 1.8 (0.5 ) (2.4 ) (4.3 ) Hedge destinated as cash flow US$/R$ (7.4 ) 13.5 9.9 7.3 4.7 1.3 Hedge desifnated as cash flow LIBOR 2.3 — — — — — Other derivatives Interest swap LIBOR 0.2 — — — — 0.1 Foreign Exchange option EUR/US$ — (0.6 ) (0.2 ) — 0.2 0.3 Total 1.6 17.0 11.5 6.8 2.5 (2.6 ) Rate considered LIBOR 2.87 % 1.43 % 2.14 % 2.86 % 3.57 % 4.29 % Rate considered CDI 6.40 % 3.28 % 4.91 % 6.55 % 8.19 % 9.83 % Rate considered US$/R$ 3.8748 1.9050 2.8575 3.8100 4.7625 5.7150 Rate considered LIBOR 1.1467 0.5750 0.8625 1.1500 1.4375 1.7250 (*) The positive and negative variations of 25% and 50% were applied on the rates 26.4.5 Residual Value Guarantees The residual value guarantees are reported in a manner similar to financial derivative instruments. Based on residual value guarantee contracts in force, the Company ascertains any changes in values based on third party appraisals. The probable scenario is based on the Company’s expectation of recording the provisions on a statistical basis, and the positive and negative variations of 25% and 50% have been applied to the third party appraisals at the balance sheet date. Additional variations in book balances Amounts -50% -25% Probable +25% +50% Financial guarantee of residual value 125.4 (104.5 ) (90.0 ) (1.0 ) 94.8 106.0 Total 125.4 (104.5 ) (90.0 ) (1.0 ) 94.8 106.0 If a provision is considered insufficient to cover the probable execution of the guarantees, it is increased to adjust it to the Company’s exposure at the reporting period. |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Shareholders' equity | 27. Shareholders’ equity 27.1. Capital The authorized capital is divided into 1,000,000,000 common shares. The Company’s subscribed and paid up capital as of December 31, 2018 was US$ 1,551.6 and was comprised of 740,465,044 common shares, without par value, of which 4,977,698 shares were held in treasury. The capital is comprised entirely of common shares. As per Article 14 of the Company’s bylaws, each common share generally empowered with one vote at general shareholders’ meeting, considering that no shareholder or group of shareholders, may exercise votes representing more than 5% of the quantity of shared into which our capital stock is divided. Votes that exceed this 5% threshold will not be considered. As of December 31, 2018, the equity reserve of investment and working capital exceeded the percentage of 80% of the capital stock as set forth in the bylaws (Article 50) and additionally the revenue reserves (excluding the government grant reserve) exceeded the legal limit of the capital stock as provided in Article 99 of Brazilian Law 6,404/76 for listed entities. As a result, a capital increase of US$ 113.6 was approved at a meeting of the Board of Directors held on March 5, 2018. This increase was reflected in the first quarter of 2018. 27.2. Brazilian Government Golden Share The Federal Government holds one ”golden share” with the same voting rights as other holders of common shares but which grants it certain additional rights as established in article 9 of the Embraer’s bylaws. 27.3. Treasury Shares Common shares acquired with resources from the investments and working capital reserve. This operation occurred in accordance with rules approved by the Statutory Board of Directors in a meeting held on December 7, 2007 and corresponds to 4,977,698 common shares and US$ 31.4 as of December 31, 2018. These shares lose voting and economic rights during the period in which they are held in Treasury. The movement is shown below: USD Quantity Share value Net income of At the beggining of the year 51.8 7,423,705 7.0 — Used for stock options plan(i) (20.4 ) (2,446,007 ) 8.3 10.9 At December 31, 2018 31.4 4,977,698 6.3 10.9 (i) The beneficiaries of the shares used in the share-based compensation plan include the Statutory Board of Directors, Executive Directors and certain employees. Refer to Note 28. At December 31, 2018, the market value of the shares held in Treasury was US$ 27.5 (December 31, 2017—US$ 44.4). 27.4. Investment subsidy reserve This reserve was formed as allowed by article 195-A These subsidies are not included in the calculation of the minimum mandatory dividends. 27.5. Legal reserve The statutory reserve is a revenue reserve recorded annually as an appropriation of 5% of the net income for the year. The reserve may not exceed 20% of capital, or 30% of capital and capital reserves. The reserve limit was not exceeded as of December 31, 2018 and 2017. 27.6. Investment and working capital reserve The purpose of this revenue reserve is to shield funds which might otherwise be subject to distribution and are earmarked for: (i) investments in property, plant and equipment, without detriment to retained earnings, pursuant to art. 196 of Law 6.404/76; and (ii) the Company’s working capital (iii) redeem, reimburse or purchase shares of the Company and (iv) be distributed to the shareholders. 27.7. Interest on own capital and dividends Interest on own capital and interim dividends approved by the Statutory Board of Directors and distributed to the shareholders in 2018 are presented as follows: • In meeting held on March 5, 2018, the Statutory Board of Directors approved the distribution of interest on own capital for the first quarter of 2018 in the amount of US$ 4.4, corresponding to US$ 0.01 per share. Payment of interest on own capital is subject to withholding tax at 15%. The payment was made on April 11, 2018, without remuneration. • In meeting held on June 14, 2018, the Statutory Board of Directors approved the distribution of interest on own capital for the second quarter of 2018 in the amount of US$ 3.8, corresponding to US$ 0.01 per share. Payment of interest on own capital is subject to withholding tax at 15%. The payment was made on July 20, 2018, without remuneration. • In meeting held on September 13, 2018, Statutory Board of Directors approved the payment of interim dividends in the amount of US$ 1.8, corresponding to US$ 0.01 per common share. Payment was made from October 11, 2018, without any remuneration. • In a meeting held on December 14 2018, Statutory Board of Directors approved the payment of interim dividends in the amount of US$ 1.9, corresponding to US$ 0.01 per common share. Payment was made from January 10, 2019, without any remuneration. 27.8. Other Comprehensive Income Consists of the following adjustments: • Cumulative translation adjustment: foreign exchange gains/losses resulting from translation of the consolidated financial statements in the functional currency to the presentation currency (Real) and foreign exchange gains/losses resulting from translation of the foreign subsidiaries’ financial statements measured in other functional currencies to the Company’s functional currency (dollar); and • Other comprehensive income: unrealized actuarial gains (losses) resulting from the healthcare plans sponsored by the Company and the fair value variation of financial instruments available for sale. |
Share-based compensation
Share-based compensation | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Share-based compensation | 28. Share-based compensation In February 2014, the Board of Directors approved the revision of the Executive Remuneration Policy (ERP), applicable to all executive officers and other Company executives. The elements of executive compensation include the Long Term Incentives (LTI), the main objectives of which are to (i) maintain and attract highly qualified personnel for the Company, (ii) assure those who are able to contribute to improving the Company’s performance of the right to participate in the results of their contribution, and (iii) also to ensure the continuity of the Company’s management by aligning the interests of executives with those of shareholders. The Company currently has two LTI modes: stock options and virtual shares. 28.1. Stock Option Program for the granting of stock options, for the executives of the Company or its subsidiaries, who may exercise their right, is as follows: I) 33% after 3 years, II) 33% after 4 years and III) 34% after 5 years, all in relation to the grant date of each option. The exercise price of each option is set on the grant date at the weighted average stock option price of the last sixty trading days, and may be adjusted by up to 30% to offset any speculation. The participant will have a maximum exercise period of seven years, starting from the grant date. The grants awarded are summarized below: in thousands of options Grants Exercised Canceled (i) Outstanding Exercible Grants on January 23, 2012 4,860,000 (3,732,000 ) (1,009,100 ) 118,900 11.5 Grants on March 20, 2013 4,494,000 (2,409,302 ) (1,266,890 ) 817,808 15.7 At December 31, 2018 9,354,000 (6,141,302 ) (2,275,990 ) 936,708 27.2 (i) The cancellations refer to shares granted to executives or employees who no longer work for the Company. Additionally, on April 16, 2014, there was a cancellation of the grants awarded to members of the Board of Directors, with payment of compensation to plan participants. 28.2. Phantom shares plan The plan is based on the granting of virtual shares to directors and managers and the main objective is to attract and keep highly qualified staff in the Company and its subsidiaries to ensure continuity of management and align the interests of directors and key personnel of the Company and controlled entities to those of the Company’s shareholders. The value of the long-term incentives (“LTI”) will be converted at the average price of the Company’s shares in the last 30 trading days by determining the quantity of virtual shares allocated to each participant, divided into two classes, with 50% in the form of restricted virtual shares and 50% in the form of virtual performance shares. The Company will pay the LTI by converting the quantity of virtual shares into reais at the average quoted price (weighted by trading volume) of the Company’s shares in the last 10 trading days, as follows: • restricted virtual shares: (i) 33% on the third anniversary of the grant date; (ii) 33% on the fourth anniversary of the grant date, and (iii) 34% on the fifth anniversary of the grant date; and • A change in the virtual performance share calculation was approved in August 2017. Virtual performance shares granted in 2015, 2016 and 2017 will be paid in 2020, while those granted in 2018 will be paid in 2021. The amounts payable will now be based on the internal cost reduction target and not on the Economic Value Added indicator. The amounts resulting from conversion of virtual shares will be added to the amounts equivalent to dividends and interest on own capital effectively paid by the Company during the vesting period. The fair value of virtual shares is determined based on the average price (weighted by trading volume) of the Company’s shares (EMBR3-R$) Amount of virtual Grant value Amount of virtual Fair value of Grants on February 25, 2014 1,570,698 30.4 175,100 3.7 Grants on March 03, 2015 1,237,090 30.2 546,024 11.5 Grants on March 10, 2016 1,095,720 31.1 541,595 11.4 Grants on June 09, 2016 55,994 1.1 32,674 0.7 Grants on August 25, 2016 70,978 1.1 43,783 0.9 Grants on August 24, 2017 1,930,350 30.5 762,782 16.1 Grants on April 12, 2018 1,625,372 35.2 346,221 7.3 At December 31, 2018 7,586,202 159.6 2,448,179 51.6 (i) Virtual shares until December 31, 2018 considering the plan’s vesting period. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Earnings per share | 29. Earnings per share 29.1. Basic Basic earnings per common share is computed by dividing net income for the year by the weighted average number of shares outstanding during the period, excluding shares acquired by the Company and held in Treasury. 12.31.2018 12.31.2017 12.31.2016 (Restated) (Restated) Net income attributable to owners of Embraer (178.2 ) 264.0 178.6 (178.2 ) 264.0 178.6 Weighted average number of shares (in thousands) 734,065 734,264 735,571 Basic earnings per share—U.S. dollars (0.24 ) 0.36 0.24 29.2. Diluted Diluted earnings per share are calculated by adjusting the weighted average number of common shares outstanding to assume conversion of all potentially dilutive shares. The Company has only one category of potentially dilutive shares, namely share purchase options. A calculation is made in respect of these share purchase options to determine the number of shares that could be acquired at fair value (determined as the average market price of the Company’s share), based on the monetary value of subscription rights tied to the share purchase options in circulation. The number of shares calculated as described above is compared with the number of shares issued, assuming the exercise of share purchase options. 12.31.2018 12.31.2017 12.31.2016 (Restated) (Restated) Net income attributable to owners of Embraer (178.2 ) 264.0 178.6 (178.2 ) 264.0 178.6 Weighted average number of shares (in thousands) 734,065 734,264 735,571 Dilution for the issuance of stock options (in thousands) (i) — 545 1,690 Weighted average number of shares (in thousands)—diluted 734,065 734,809 737,261 Diluted earnings per share—U.S. dollars (0.24 ) 0.36 0.24 (i) Refers to the effect of potentially dilutive shares for December 31, 2018. At December 31, 2018, there were no anti-dilutive effects. |
Revenue from contracts with cus
Revenue from contracts with customers | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Revenue from contracts with customers | 30. Revenue from contracts with customers a) Revenue disaggregation: The revenue amounts by category, including main product and service lines and main geographic areas are presented below, including the reconciliation of revenue’s analytical composition with the reportable segments of the Company: Revenue by category at December 31, 2018: Commercial Defense and Security Executive Service and Other Total Aircraft 2,276.2 92.5 997.4 — 6.9 3,373.0 Aircraft/Development (Defense BU) — 267.0 — — — 267.0 Others 82.1 2.0 107.0 — — 191.1 Service — 183.2 — 622.7 0.1 806.0 Spare Parts — 67.4 — 358.1 8.5 434.0 Total 2,358.3 612.1 1,104.4 980.8 15.5 5,071.1 North Latin Asia Pacific Brazil Europe Other Total Aircraft 2,253.8 87.0 318.2 40.3 644.5 29.2 3,373.0 Aircraft/Development (Defense BU) 1.9 0.1 0.7 243.3 12.6 8.4 267.0 Others 66.6 11.9 5.2 74.7 8.9 23.8 191.1 Service 353.7 42.2 92.3 42.4 230.3 45.1 806.0 Spare Parts 283.0 8.8 15.6 42.3 69.7 14.6 434.0 Total 2,959.0 150.0 432.0 443.0 966.0 121.1 5,071.1 Revenue by category at December 31, 2017 (Restated): Commercial Defense and Executive Service and Other Total Aircraft 2,691.8 — 1,175.0 — 7.1 3,873.9 Aircraft/Development (Defense BU) — 651.8 — — — 651.8 Others 79.6 7.2 105.3 0.3 — 192.4 Service — 177.8 — 622.2 1.0 801.0 Spare Parts — 16.9 — 299.7 23.7 340.3 Total 2,771.4 853.7 1,280.3 922.2 31.8 5,859.4 North Latin America Asia Pacific Brazil Europe Other Total Aircraft 2,711.5 0.2 754.0 20.0 359.3 29.0 3,874.0 Aircraft/Development (Defense BU) 38.0 1.3 9.8 558.4 33.7 10.6 651.8 Others 104.1 0.2 1.7 11.9 0.3 74.1 192.3 Service 304.1 36.9 75.4 109.4 231.5 43.6 800.9 Spare Parts 180.2 13.0 18.6 49.2 66.8 12.6 340.4 Total 3,337.9 51.6 859.5 748.9 691.6 169.9 5,859.4 Revenue by category at December 31, 2016 (Restated): Commercial Defense and Security Executive Jets Service and Other Total Aircraft 2,868.6 42.2 1,402.9 — 0.1 4,313.8 Aircraft/Development (Defense BU) — 578.4 — — (0.3 ) 578.1 Others 48.7 (6.2 ) 150.4 1.5 — 194.4 Service (0.3 ) 194.4 — 596.9 1.8 792.8 Spare Parts (0.1 ) 16.7 — 283.8 24.4 324.8 Total 2,916.9 825.5 1,553.3 882.2 26.0 6,203.9 North Latin Asia Pacific Brazil Europe Other Total Aircraft 3,150.6 164.7 664.2 41.2 250.9 42.2 4,313.8 Aircraft/Development (Defense BU) 112.1 (1.3 ) 14.2 445.5 3.8 3.8 578.1 Others 157.3 1.4 17.3 (10.6 ) 12.1 16.8 194.3 Service 318.4 35.4 68.6 132.5 193.4 44.5 792.8 Spare Parts 172.3 10.5 22.9 54.7 58.3 6.2 324.9 Total 3,910.7 210.7 787.2 663.3 518.5 113.5 6,203.9 The contracts are grouped in the categories above as they have are affected similarly by economic factors. b) Contract balances, including contract costs: Note 12.31.2018 12.31.2017 12.31.2016 (Restated) (Restated) Contract assets 358.0 447.5 370.6 Contract costs (Other assets) 9.1 7.6 6.5 Contract liabilities 1,243.6 1,126.6 1,244.8 Customer advances 1,057.4 938.1 911.3 Deferred revenue 186.2 188.5 333.5 Financial guarantee 23 11.6 17.1 22.7 As of December 31, 2018 and December 31, 2017 there were no losses recognized for contract assets. Losses recognized on trade accounts receivable balances are presented in Note 7. Of the total revenues recognized as of December 31, 2018, US$ 785.9 were included in the balance of contract liabilities at the beginning of the period, US$ 652.7 for the year ended December 31, 2017 and US$ 678.7 for the year ended December 31, 2016. The amount of revenue recognized as of December 31, 2018 related to performance obligations achieved in prior years (or partially achieved) is US$ 13.8, which refers mainly to change orders approved in the year without changes in goods or services to be delivered The Company had the following amounts in other assets related to costs to obtain contracts: Sales Bank Off Set Costs Total At January 01, 2016 (Restated) — 9.3 — 9.3 Additions 5.9 2.6 0.1 8.6 Disposals (5.9 ) (5.4 ) (0.1 ) (11.4 ) At December 31, 2016 (Restated) — 6.5 — 6.5 Additions (10.2 ) 1.5 5.6 (3.1 ) Disposals 10.2 (0.4 ) (5.6 ) 4.2 At December 31, 2017 (Restated) — 7.6 — 7.6 Additions 1.5 1.4 0.8 3.7 Disposals (0.9 ) (0.5 ) (0.8 ) (2.2 ) At December 31, 2018 0.6 8.4 — 9.0 There were no impairment losses recognized for costs to obtain contracts. Assets for obtaining contracts are amortized when (or as and when) the revenue is recognized. As permitted by the standard, the tables above do not include values of short-term contracts (one year or less). In addition, there were no figures included in the tables above referring to variable consideration of contracts that currently have some restriction, according to the pratical expedient. c) Performance obligations: The Company has a portfolio of firm orders, whose performance obligations are unsatisfied or partially satisfied. The amount of revenue allocated to performance obligations not yet satisfied (or partially satisfied) as of December 31, 2018 is US$ 16.3 billion, of which US$ 12.8 billion is expected to be satisfied in the next 5 years, as estimated by the Company. |
Revenue (expenses) by type
Revenue (expenses) by type | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Revenue (expenses) by type | 31. Revenue (expenses) by type The Company opted to present the consolidated statements of income by function. The table below shows the detailed costs and expenses by nature: 12.31.2018 12.31.2017 12.31.2016 (Restated) (Restated) As presented as statements of Income: Revenue 5,071.1 5,859.4 6,203.9 Cost of sales and services (4,303.1 ) (4,764.1 ) (4,982.0 ) Administrative (182.6 ) (179.1 ) (164.3 ) Selling (304.2 ) (315.9 ) (353.4 ) Research (46.1 ) (49.2 ) (47.6 ) Other income (expenses), net (199.4 ) (210.4 ) (442.6 ) Equity in losses on associates (0.4 ) 1,2 (0.3 ) Operating profit before financial income 35.3 341.9 213.7 Revenue (expenses) by nature: Revenue from sales of goods 4,450.5 5,023.6 5,404.7 Revenue from sales of services 676.5 920.6 880.8 Sales deductions and tax on revenue (i) (55.9 ) (84.8 ) (81.6 ) General manufacturing costs (ii) (4,031.1 ) (4,421.4 ) (4,613.6 ) Depreciation (159.2 ) (196.5 ) (194.5 ) Amortization (112.8 ) (146.2 ) (173.9 ) Personnel expenses (245.8 ) (245.4 ) (261.6 ) Selling expenses (42.7 ) (53.8 ) (83.6 ) Provision for penalties — (10.1 ) (228.0 ) Restructuring expenses — (6.4 ) (117.3 ) Miscellaneous (444.2 ) (437.7 ) (317.7 ) Operating profit before financial income 35.3 341.9 213.7 (i) Refers to sales taxes and other deductions. (ii) Refers to costs of materials, direct labor and general manufacturing expenses. |
Other operating income (expense
Other operating income (expense), net | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Other operating income (expense), net | 32. Other operating income (expense), net 12.31.2018 12.31.2017 12.31.2016 (Restated) (Restated) Assets devaluation (i) (99.5 ) (109.1 ) (77.3 ) Corporate projects (ii) (83.4 ) (33.0 ) (21.4 ) Taxes on other outputs (27.5 ) (25.1 ) (36.7 ) Expenses system project (19.7 ) (27.7 ) (16.4 ) Provision for contingencies (12.0 ) (8.0 ) (1.3 ) Training and development (8.7 ) (10.0 ) (10.9 ) Flight safety standards (4.4 ) (4.8 ) (4.6 ) Aircraft maintenance and flights costs - fleet (3.3 ) (2.4 ) (3.4 ) Contractual fines (iii) (2.9 ) 6.6 (7.7 ) Extemporaneous credits — 10.8 16.0 Financial guarantee — 9.6 8.5 Restructuring expenses — (6.4 ) (117.3 ) Accounts payable for penalties — (10.1 ) (228.0 ) Other sales 8.8 13.3 11.3 Recovery of expenses 11.7 6.4 7.9 Royalties 15.3 11.9 11.9 Contractual fines revenue (iv) 35.4 2.4 24.2 Others (9.2 ) (34.8 ) 2.6 (199.4 ) (210.4 ) (442.6 ) (i) Impairment losses recognized in the year, including US$ 61.3 of Lineage aircraft model (Note 17), US$ 6.0 of aircraft held in property, plant and equipment (Note 15) and US$ 32.2 of residual value devaluation related to assets attached to structured operations recorded in collateralized accounts receivable (Note 9); (ii) Refers to projects focused on system and process improvements and special projects of the Company; (iii) Refers to contractual fines to be paid to suppliers due to non-compliance (iv) Substantially fines charged to customers for cancellation of sales contracts, mainly in the Segment of Executive Aviation, in accordance with the contract terms. |
Financial income (expense), net
Financial income (expense), net | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Financial income (expense), net | 33. Financial income (expense), net 12.31.2018 12.31.2017 12.31.2016 (Restated) (Restated) Financial income: Interest on cash and cash equivalents and financial investments 93.0 127.5 201.8 Interest on receivables 33.1 37.5 34.3 Residual value guarantee — 9.5 — Taxes over financial revenue (9.0 ) 8.0 (17.0 ) Other 0.1 0.3 2.4 Total financial income 117.2 182.8 221.5 Financial expenses: Financial restructuring costs (0.9 ) (1.5 ) (0.5 ) IOF - (tax on financial transactions) (1.4 ) (3.7 ) (2.9 ) Interest on taxes, social charges and contributions (3.7 ) (2.2 ) (21.0 ) Residual value guarantee (22.3 ) — (26.7 ) Interest on loans and financing (226.3 ) (215.2 ) (182.6 ) Other (18.7 ) (8.6 ) (17.0 ) Total financial expenses (273.3 ) (231.2 ) (250.7 ) Derivative instruments (15.4 ) 7.8 (8.3 ) Financial income (expenses), net (171.5 ) (40.6 ) (37.5 ) |
Foreign exchange gains (losses)
Foreign exchange gains (losses), net | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Foreign exchange gains (losses), net | 34. Foreign exchange gains (losses), net 12.31.2018 12.31.2017 12.31.2016 (Restated) (Restated) Monetary and foreign exchange variations Assets: Advances to suppliers* — (1.3 ) — Tax credits (30.9 ) (2.2 ) 28.5 Trade accounts receivable and contract assets (24.6 ) (38.8 ) 14.6 Cash and cash equivalents and financial investments (80.8 ) (4.0 ) 204.2 Other (25.6 ) (0.4 ) 47.5 (161.9 ) (46.7 ) 294.8 Liabilities: Loans and financing 82.7 6.0 (153.3 ) Advances from customers* — 25.1 (46.3 ) Provisions 24.3 3.8 (27.6 ) Taxes and charges payable 13.0 1.6 (21.2 ) Accounts payable 17.4 6.8 (18.8 ) Suppliers 2.7 0.1 (11.7 ) Provisions for contingencies 3.3 (1.3 ) (3.2 ) Deferred taxes (1.3 ) (1.4 ) 0.4 Other (0.9 ) — (0.5 ) 141.2 40.7 (282.2 ) Net monetary and foreign exchange variations (20.7 ) (6.0 ) 12.6 Derivative instruments 20.7 12.6 (8.2 ) Foreign exchange gain (loss), net — 6.6 4.4 * See note to 2.2.1(c) for IFRIC 22 adoption discussions. |
Responsibilities and Commitment
Responsibilities and Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Responsibilities and Commitments | 35. Responsibilities and Commitments 35.1. Trade-ins The Company has offered 8 aircraft trade-in Trade-in trade-in up-to-date trade-in 35.2. Leases Operating leases refer to buildings, machinery, vehicles and computer equipment. At December 31, 2018 the amounts recognized totaled US$ 7.3, at December 31, 2017 US$ 11.0 and at December 31, 2016 US$ 15.6. These leases expire at various dates through 2044. The following table shows the payment schedule for the Company’s operating leases at December 31, 2018: Year 2019 5.4 2020 4.5 2021 4.0 2022 3.5 After 2022 14.7 Total 32.1 35.3. Financial Guarantees The table below provides quantitative data on the financial guarantees provided by the Company to third parties. The maximum potential payments (off balance sheet exposure) represent the worst-case scenario and do not necessarily reflect the results expected by the Company. Estimated proceeds from performance guarantees and underlying assets represent the anticipated values of assets the Company could liquidate or receive from other parties to offset its payments under guarantees. 12.31.2018 12.31.2017 Maximum financial guarantees 66.6 107.7 Maximum residual value guarantees 253.1 267.4 Mutually exclusive exposure (i) (26.9 ) (29.0 ) Provisions and liabilities recorded (137.0 ) (126.0 ) Off-balance 155.8 220.1 Estimated proceeds from financial guarantees and underlying assets 177.6 266.9 (i) When an underlying asset is covered by mutually exclusive financial and residual value guarantees, the residual value guarantee may only be exercised if the financial guarantee has expired without having been exercised. On the other hand, if the financial guarantee is exercised, the residual value guarantee is automatically terminated. This exposure is reduced by the fact that, to benefit from the guarantee, the counterparty must ensure that the aircraft complies with rigid conditions for its return. 35.4. Insurance cover The Company contracts different types of insurance policies to protect assets in the event of any accident that might cause significant losses. Policies are also contracted for risks subject to compulsory insurance, either legally or contractually. The Company and its subsidiaries have civil liability insurance for their operations in Brazil and abroad, with coverage and conditions that management considers appropriate to the risks involved. To cover substantial damage to assets and loss of earnings of its operations in Brazil and abroad, the Company has insured an amount of US$ 7.7 billion. |
Supplemental Cash Flow informat
Supplemental Cash Flow information | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Supplemental Cash Flow information | 36. Supplemental Cash Flow information 36.1 Payments made during the year and transactions not affecting cash and cash equivalents 12.31.2018 12.31.2017 12.31.2016 Payments made during the period: Interest 212.7 186.4 175.0 Income tax and social contribution 23.3 28.6 153.9 Non-cash Property, plant and equipment, transfer to pool parts inventory (29.5 ) (21.6 ) 2.5 Property, plant and equipment, transfer to financial guarantees — — 45.7 Property, plant and equipment, transfer from intangible assets — — 7.5 Property, plant and equipment, transfer for providing for the sale of inventory (112.7 ) (100.8 ) (34.8 ) Impairment of assets (55.2 ) (58.4 ) — Government grants — (4.3 ) (51.5 ) |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Segment information | 37. Segment information Management defined the Company’s operating segments based on the reports used for strategic decision making, reviewed by the chief operating decision-maker. The chief operating decision-maker analyzed the business, dividing it geographically and in terms of markets for specific products. From a geographic perspective, Management considers the performance of the operations in Brazil, North America, Latin America, Asia Pacific, Europe and Others. During the year, as a result of a change in corporate internal structure and the way in which the chief-operating decision-maker allocates resources and reviews businesses performance, the segment of Services & Support was established. Therefore, the segment information is restated as required by IFRS 8 for retrospective disclosure of the new segment. From a product perspective, the analysis considers the following market segments: 37.1 Commercial aviation business The Commercial Aviation business mainly involves the development, production and sale of commercial jets and aircraft leases. • ERJ 145 family, comprising the ERJ 135, ERJ 140 and ERJ 145 jets, certified to operate with 37, 44 and 50 seats, respectively. • EMBRAER 170/190 family, comprising the EMBRAER 170, a 70-seat 76-seat 100-seat 108-seat • E-Jets E-Jets aircraft—E175-E2 E190-E2 E195-E2, E190-E2 E195-E2 E175-E2 37.2 Defense and security business The defense and security business operations mainly involve research, development, production, modification and support for military defense and security aircraft, as well as a wide range of products and integrated solutions that include radars, special space systems (satellites) and advanced information and communications systems, such as Command, Control, Communications, Computer, Intelligence, Surveillance and Reconnaissance, or C4ISR systems. The expansion and diversification of the portfolio, previously focused on military aircraft, was facilitated by a strategy of partnerships, acquisitions and organic growth. The Company’s principal customer is currently the Brazilian Defense Ministry and, in particular, the Brazilian Air Force, although the diversification of the portfolio has resulted in a corresponding diversification of customers: the Brazilian Army and Navy and the Communications Ministry, as well as a growing international presence of our products and solutions. The main products of the Defense and Security portfolio are as follows • Light Attack and Advanced Training Aircraft (Super Tucano) – the Super Tucano is a military turboprop that combines training and operational capacities with low acquisition and operating costs. The Super Tucano has the operational capacities for frontier surveillance, proximity aerial support and counter insurgence missions (COIN). • Aircraft Modernization – The Company offers aircraft upgrade services and currently operates four contracted programs. The first, known as F-5BR, F-5 A-1M, A-4 AF-1 • The ISR family (Intelligence, Surveillance and Reconnaissance), based on the ERJ 145 platform, includes the EMB 145 AEW&C – Anticipated Aerial Alert and Control, EMB 145 Multi Intel – Remote Sensing and Air-Ground • KC-390 • Transportation of Authorities and Special Missions – Derived from the commercial and executive aircraft platforms, these are aircraft used to transport government authorities or to carry out special missions. • Radars – solutions offered through Bradar, a technology-based industry specialized in developing and producing radars for Remote Sensing and Defense, include radar for anti-aircraft artillery, surveillance of terrestrial activity, military and civil air traffic control, a communications intelligence system and synthetic aperture radar for cartography and precision monitoring services. • Software and Systems Development – combining the expertise of Atech – Negócios em Tecnologia S.A. and investments by Embraer in system development and integration, provides specialized engineering services for the development, installation, revitalization and maintenance of critical control, defense and monitoring systems, as well as the machinery and equipment required for the services. • Frontier monitoring and protection of strategic structures – Based on its experience in systems integration, and through its wholly owned subsidiary Savis, Embraer is dedicated to developing, designing, certifying, producing, integrating and implementing systems and services in the field of frontier monitoring and control and protection of critical infra-structures. • Satellites - Visiona Space Technology, a joint venture between Embraer and Telebrás, was hired to provide and integrate the Brazilian Geostationary Defense and Communications Satellite system (SGDC), to meet the satellite communications requirements of the Brazilian government, including the National Broadband Program and a wide range of strategic defense transmissions, as well as the assimilation of technologies, marking Embraer’s presence in this market. Also provides services of supply and analysis of satellite images with the objective of developing major sensing projects in Brazil and neighboring countries. 37.3 Executive Jet business Executive Jets market operations comprise the development, production and sale of executive jets and the provision of support services, and leases of the following product lines: • Legacy 600 and Legacy 650 - executive jets in the super midsize and large categories, deliveries of which started in 2002 and 2010, respectively. • Legacy 450 and Legacy 500- • Phenom family - executive jets in the Entry Jet and Light Jet categories, respectively. The first deliveries of the Phenom 100 were made in 2008, and deliveries of the Phenom 300 started in 2009. • Lineage 1000 - an ultra-large executive jet. Deliveries of this model started in 2009. • Praetor 500 and Praetor 600 - most disruptive executive jets in the Midsize and Super Midsize categories, introduced in Q4 2018 with deliveries starting in 2nd half 2019. 37.4 Service & Support Segment created to strengthen Embraer’s know-how In addition to its experience in proposing support solutions to customers, OGMA (Embraer’s subsidiary in Portugal) offers MRO (Maintenance, Repair and Overhaul) services for a wide range of commercial, executive and defense aircraft, aircraft components and engines and also it is a significant supplier of steel and composite aviation structures to several aircraft manufacturers. The services and support segment consists of 6 macro processes: • Capture customer needs and develop integrated support and services solutions: To develop integrated and competitive support solutions, technical services, materials, or MRO activities that meet the needs and expectations of Embraer customers. • Sell and administrate support and services solution: To sell integrated and competitive technical support, service solutions, materials, or MRO activities, and administer support and service contracts. • Deliver Material Solutions: To provide parts to customers, by direct sale or availability through special programs, manage component repair, provide inventory management services and advice on inventory formation, etc. • Deliver Technical Solutions: To provide technical, operational and maintenance support to customers fleets with services such as providing training for pilots and commissioners, aircraft modification and enhancement projects, review of technical, operational and maintenance publications, and sustaining digital solutions. • Deliver MRO Solutions: To provide maintenance services for aircraft, engines and landing gear (scheduled and unscheduled), aircraft modernization and component repair. • Monitor and ensure operational excellence and customer relationship excellence: To guarantee the operational excellence of Materials, Technique and MRO Solutions, through maintaining accountability of the operational leadership and the support areas, consistent monitoring of operational KPIs, reviewing customer satisfaction through MFA practices, maintaining customer relationships with CRM and operational areas that directly interface with the customers. 37.5 Other Operations in this segment relate to the supply of structural parts and mechanical and hydraulic systems, and production of agricultural crop-spraying aircraft. Consolidated statements of income data by operating segment – year ended December 31, 2018: Commercial Defense and Executive Service and Other Total Unallocated Total Revenue 2,358.3 612.1 1,104.3 980.8 15.6 5,071.1 — 5,0711 Cost of sales and services (1,976.7 ) (702.3 ) (914.0 ) (689.0 ) (21.1 ) (4,303.1 ) — (4,303.1 ) Gross profit 381.6 (90.2 ) 190.3 291.8 (5.5 ) 768.0 — 768.0 Gross profit % 16.2 % -14.7 % 17.2 % 29.8 % -35.3 % 15.1 % 15.1 % Operating income (expense) (229.1 ) (93.0 ) (235.0 ) (168.7 ) (6.9 ) (732.7 ) — (732.7 ) Operating profit before financial income (expense) 152.5 (183.2 ) (44.7 ) 123.1 (12.4 ) 35.3 — 35.3 Financial income (expense), net (171.5 ) (171.5 ) Foreign exchange gain (loss), net — — Profit before taxes on income (136.2 ) Income tax expense (35.0 ) (35.0 ) Net income (171.2 ) (i) The results of the Defense and Security segment include the negative impact of special non-recurring In the Commercial Aviation segment, one customer individually contributed a 17,9% share of net revenue in 2018 with an approximate value of US$ 907.2 Revenue by geographic area – year ended December 31, 2018: Commercial Defense and Executive Service and Other Total North America 1,449.4 145.7 936.7 422.2 5.0 2,959.0 Europe 519.1 122.8 127.4 196.7 — 966.0 Asia Pacific 324.1 1.6 1.6 104.7 — 432.0 Latin America, except Brazil 11.9 68.3 22.5 47.3 — 150.0 Brazil 0.2 258.9 16.1 157.2 10.6 443.0 Other 53.6 14.8 — 52.7 — 121.1 Total 2,358.3 612.1 1,104.3 980.8 15.6 5,071.1 Assets by operating segment - year ended December 31, 2018: Commercial Defense and Executive Service and Support Other Total Unallocated Total Trade accounts receivable 5.8 111.2 1.3 192.2 7.5 318.0 — 318.0 Property, plant and equipment 688.8 295.6 544.0 435.6 0.7 1,964.7 — 1,964.7 Intangible assets 862.5 11.0 829.0 — 78.4 1,780.9 117.9 1,898.8 Total 1,557.1 417.8 1,374.3 627.8 86.6 4,063.6 117.9 4,181.5 Assets by geographic area - year ended December 31, 2018: North Europe Asia Pacific Brazil Total Trade accounts receivable 83.9 106.4 8.8 118.9 318.0 Property, plant and equipment 351.1 501.6 57.1 1,054.9 1,964.7 Intangible assets 53.6 5.7 — 1,839.5 1,898.8 Total 488.6 613.7 65.9 3,013.3 4,181.5 Consolidated statements of income data by operating segment – year ended December 31, 2017 Restated): Commercial Defense and Executive Service and Other Total Unallocated Total Revenue 2,771.4 853.7 1,280.3 922.2 31.8 5,859.4 — 5,859.4 Cost of sales and services (2,178.1 ) (792.9 ) (1,126.4 ) (640.3 ) (26.4 ) (4,764.1 ) — (4,764.1 ) Gross profit 593.3 60.8 153.9 281.9 5.4 1,095.3 — 1,095.3 Gross profit % 21.4 % 7.1 % 12.0 % 30.6 % 17.0 % 18.7 % 18.7 % Operating income (expense) (230.5 ) (109.5 ) (206.0 ) (177.0 ) (13.9 ) (736.9 ) (16.5 ) (753.4 ) Operating profit before financial income (expense) 362.8 (48.7 ) (52.1 ) 104.9 (8.5 ) 358.4 (16.5 ) 341.9 Financial income (expense), net (40.6 ) (40.6 ) Foreign exchange gain (loss), net 6.6 6.6 Loss before taxes on income 307.9 Income tax expense (27.9 ) (27.9 ) Net income 280.0 Revenue by geographic area – year ended December 31, 2017 (Restated): Commercial Defense and Executive Service and Other Total North America 1,795.5 93.3 1,006.8 421.0 21.3 3,337.9 Europe 200.1 133.5 161.7 196.3 — 691.6 Asia Pacific 670.3 13.7 94.1 81.4 — 859.5 Latin America, except Brazil 0.5 5.4 0.6 45.1 — 51.6 Brazil 0.9 587.1 17.1 133.3 10.5 748.9 Other 104.1 20.7 — 45.1 — 169.9 Total 2,771.4 853.7 1,280.3 922.2 31.8 5,859.4 Assets by operating segment - year ended December 31, 2017 (Restated): Commercial Defense Executive Service and Support Other Total Unallocated Total Trade accounts receivable 2.7 22.9 6.8 256.3 8.2 296.9 — 297.0 Property, plant and equipment 781.3 578.4 298.7 445.8 0.7 2,104.9 — 2,104.9 Intangible assets 793.1 5.7 881.9 — 64.9 1,745.6 136.8 1,882.4 Total 1,577.1 607.0 1,187.4 702.1 73.8 4,147.4 136.8 4,284.3 Assets by geographic area - year ended December 31, 2017 (Restated): North Europe Asia Pacific Brazil Total Trade accounts receivable 36.8 45.0 3.5 211.7 297.0 Property, plant and equipment 378.0 555.4 56.3 1,115.2 2,104.9 Intangible assets 31.2 6.8 — 1,844.4 1,882.4 Total 446.0 607.2 59.8 3,171.3 4,284.3 Consolidated statements of income data by operating segment – year ended December 31, 2016 (Restated): Commercial Defense and Security Executive Jets Service and Support Other Total Unallocated Total Revenue 2,916.9 825.5 1,553.3 882.2 26.0 6,203.9 — 6,203.9 Cost of sales and services (2,325.3 ) (693.6 ) (1,343.7 ) (601.6 ) (17.8 ) (4,982.0 ) — (4,982.0 ) Gross profit 591.6 131.9 209.6 280.6 8.2 1,221.9 — 1,221.9 Gross profit % 20.3 % 16.0 % 13.5 % 31.8 % 31.5 % 19.7 % 0.0 % 19.7 % Operating income (expense) (210.9 ) (87.6 ) (172.9 ) (188.5 ) (3.0 ) (662.9 ) (345.3 ) (1,008.2 ) Operating profit before financial income (expense) 380.7 44.3 36.7 92.1 5.2 559.0 (345.3 ) 213.7 Financial income (expense), net (37.5 ) (37.5 ) Foreign exchange gain (loss), net 4.4 4.4 Profit before taxes on income 180.6 Income tax expense (0.3 ) (0.3 ) Net income 180.3 Revenue by geographic area – year ended December 31, 2016 (Restated): Commercial Defense and Executive Service and Other Total North America 2,157.3 166.4 1,147.7 416.6 22.7 3,910.7 Europe 105.1 99.3 158.1 156.0 — 518.5 Asia Pacific 581.6 22.2 98.4 85.0 — 787.2 Latin America, except Brazil 63.9 (0.7 ) 102.3 45.2 — 210.7 Brazil (6.9 ) 479.6 46.7 140.6 3.3 663.3 Other 15.9 58.7 0.1 38.8 — 113.5 Total 2,916.9 825.5 1,553.3 882.2 26.0 6,203.9 |
Subsequent event
Subsequent event | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Subsequent event | 38. SUBSEQUENT EVENT 38.1 Approval of the transaction between Embraer and The Boeing Company On January 10, 2019 the Brazilian Federal Government informed that it would not exercise the veto right on the strategic partnership between Embraer and The Boeing Co., under the terms mentioned in item 1 (Operations). Thereafter, on January 11, 2019 the Company’s Board of Directors decided (i) to ratify the resolution of December 17, 2018 that approved the Transaction; (ii) to authorize the execution of the Master Transaction Agreement, which provides the terms and conditions for the consummation of the strategic partnership in connection with the commercial aviation, the Contribution Agreement, which provides the terms and conditions for the creation of a joint venture for the promotion and development of new markets and applications for the multi-mission airplane KC-390, On January 24, 2019 Embraer and The Boeing Company entered into the Master Transaction Agreement and the Contribution Agreement and on February 26, 2019 the shareholders of the Company approved, with 96.8% of valid votes, the strategic partnership with The Boeing Company, as stated in the Management’s Proposal disclosed on January 24, 2019. The consummation of the Transaction will be subject to (i) approval by antitrust authorities in Brazil, in the United States and other applicable jurisdictions; and (ii) the satisfaction of other conditions customary in similar transactions. |
Presentation of the Financial_2
Presentation of the Financial Statements and Accounting Practices (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Changes in accounting policies - adoption of IFRS 9, IFRS 15 and IFRIC 22 | 2.2.1 Changes in accounting policies - adoption of IFRS 9, IFRS 15 and IFRIC 22 As a result of the full retrospective adoption of accounting standards IFRS 9 and IFRS 15 and changes in the Company’s accounting policies, the consolidated financial statements for the prior year were restated. The following tables present the impacts of the adoption adjustments for each item from the consolidated financial statements. Items that were not affected and restated by the changes were not included. As a result, the reported subtotals and totals cannot be recalculated from the numbers provided. The adjustments are explained in more detail in the topics below: Consolidated Statements of Financial Position As of December 31, 2017 Published IFRS 15 IFRS 9 Restated Financial investments 2,365.6 — 0.5 2,366.1 Trade accounts receivables, net 717.2 (432.8 ) 12.6 297.0 Contract assets — 447.5 — 447.5 Other current assets 3,969.0 — — 3,969.0 Total Current Assets 7,051.8 14.7 13.1 7,079.6 Financial investments 251.3 — (0.1 ) 251.2 Deferred income tax and social contribution 2.9 13.0 (2.5 ) 13.4 Investments 5.6 — — 5.6 Other non-current 4,624.8 — — 4,624.8 Total Non-Current 4,884.6 13.0 (2.6 ) 4,895.0 TOTAL ASSETS 11,936.4 27.7 10.5 11,974.6 Contract liabilities — 1,001.1 — 1,001.1 Advances from customers 799.2 (799.2 ) — — Provisions 141.4 (17.3 ) — 124.1 Unearned income 164.1 (164.1 ) — — Other current liabilities 1,678.0 — — 1,678.0 Total Current Liabilities 2,782.7 20.5 — 2,803.2 Contract liabilities — 125.5 — 125.5 Advances from customers 104.1 (104.1 ) — — Deferred income tax and social contribution 251.4 4.6 2.0 258.0 Unearned income 97.5 (5.8 ) — 91.7 Other non-current 4,518.7 — — 4,518.7 Total Non-Current 4,971.7 20.2 2.0 4,993.9 Equity 4,182.0 (13.0 ) 8.5 4,177.5 TOTAL LIABILITIES 11,936.4 27.7 10.5 11,974.6 As of December 31, 2016 Published IFRS 15 IFRS 9 Restated Financial investments 1,775.5 — 0.1 1,775.6 Trade accounts receivables, net 665.3 (345.1 ) 16.6 336.8 Contract assets — 370.6 — 370.6 Other current assets 4,340.6 — — 4,340.6 Total Current Assets 6,781.4 25.5 16.7 6,823.6 Financial investments 168.3 — 4.8 173.1 Deferred income tax and social contribution 3.6 10.7 (2.7 ) 11.6 Other non-current 4,711.5 — — 4,711.5 Total Non-Current 4,883.4 10.7 2.1 4,896.2 TOTAL ASSETS 11,664.8 36.2 18.8 11,719.8 Contract liabilities — 1,086.8 — 1,086.8 Advances from customers 716.4 (716.4 ) — — Provisions 135.8 (11.9 ) — 123.9 Unearned income 311.5 (311.5 ) — — Other current liabilities 2,017.2 — — 2,017.2 Total Current Liabilities 3,180.9 47.0 — 3,227.9 Contract liabilities — 157.9 — 157.9 Advances from customers 139.8 (139.8 ) — — Deferred income tax and social contribution 263.5 (1.3 ) 3.0 265.2 Unearned income 113.9 (7.0 ) — 106.9 Other non-current 4,025.5 — — 4,025.5 Total Non-Current 4,542.7 9.8 3.0 4,555.5 Equity 3,941.2 (20.6 ) 15.8 3,936.4 TOTAL LIABILITIES 11,664.8 36.2 18.8 11,719.8 As of January 1, 2016 Published IFRS 15 IFRS 9 Restated Trade accounts receivables, net 781.9 (360.6 ) 8.9 430.2 Contract assets — 387.7 — 387.7 Other current assets 5,629.7 — — 5,629.7 Total Current Assets 6,411.6 27.1 8.9 6,447.6 Financial investments 749.6 — (9.0 ) 740.6 Deferred income tax and social contribution 4.5 14.2 (3.0 ) 15.7 Other non-current 4,503.8 — — 4,503.8 Total Non-Current 5,257.9 14.2 (12.0 ) 5,260.1 TOTAL ASSETS 11,669.5 41.3 (3.1 ) 11,707.7 Contract liabilities — 1,136.8 — 1,136.8 Advances from customers 743.8 (743.8 ) — — Provisions 95.7 (6.0 ) — 89.7 Unearned income 320.0 (320.0 ) — — Other current liabilities 1,920.9 — — 1,920.9 Total Current Liabilities 3,080.4 67.0 — 3,147.4 Contract liabilities — — — — Advances from customers 164.1 (164.1 ) — — Deferred income tax and social contribution 417.3 (2.2 ) (2.0 ) 413.1 Unearned income 62.8 164.1 — 226.9 Other non-current 4,101.2 — — 4,101.2 Total Non-Current 4,745.4 (2.2 ) (2.0 ) 4,741.2 Equity 3,843.7 (23.5 ) (1.1 ) 3,819.1 TOTAL LIABILITIES 11,669.5 41.3 (3.1 ) 11,707.7 Consolidated Statements of Income Year ended December 31, 2017 Published IFRS 15 IFRS 9 Restated Revenue 5,839.3 20.1 — 5,859.4 Cost of sales and services (4,773.3 ) 9.2 — (4,764.1 ) Gross Profit 1,066.0 29.3 — 1,095.3 Operating income (expense) (736.7 ) (12.7 ) (4.0 ) (753.4 ) Operating profit 329.3 16.6 (4.0 ) 341.9 Financial result (41.0 ) — 7.0 (34.0 ) Profit before taxes on income 288.3 16.6 3.0 307.9 Income tax expense (income) (25.5 ) (3.6 ) 1.2 (27.9 ) Net income 262.8 13.0 4.2 280.0 Atributable to: Owners of Embraer 246.8 13.0 4.2 264.0 Noncontrolling interest 16.0 — — 16.0 Earnings per share-basic in US$ 0.34 0.36 Earnings per share-diluted in US$ 0.34 0.36 Year ended December 31, 2016 Published IFRS 15 IFRS 9 Restated Revenue 6,217.5 (13.6 ) — 6,203.9 Cost of sales and services (4,980.7 ) (1.3 ) — (4,982.0 ) Gross Profit 1,236.8 (14.9 ) — 1,221.9 Operating income (expense) (1,030.8 ) 14.9 7.7 (1,008.2 ) Operating profit 206.0 — 7.7 213.7 Financial result (47.0 ) — 13.9 (33.1 ) Profit before taxes on income 159.0 — 21.6 180.6 Income tax expense (income) 8.7 (4.4 ) (4.6 ) (0.3 ) Net income 167.7 (4.4 ) 17.0 180.3 Atributable to: Owners of Embraer 166.1 (4.4 ) 17.0 178.7 Noncontrolling interest 1.7 — — 1.7 Earnings per share-basic in US$ 0.23 0.24 Earnings per share-diluted in US$ 0.23 0.24 Reconciliation of restated Consolidated Statements of Changes in Shareholders’ Equity Note 2018 2017 2016 As of December 31 of the previous year - originally published 4,182.0 3,941.2 3,843.7 IFRS 9 Adjustment Decrease of accounts receivable impairment allowance 2.2.1.a)(ii ) 12.6 16.6 8.9 Adjustment to fair value due to change in classification 2.2.1.a) (i ) 0.4 4.9 (9.0 ) Financial asset reclassification from available for sale to fair value through P&L - from Other cumulative translation adjustments (OCI) (11.5 ) — — - to Retained earnings 11.5 — — Effect of deferred income tax over the adjustments (4.5 ) (5.7 ) (1.0 ) 8.5 15.8 (1.1 ) IFRS 15 Adjustment Increase (decrease) of development contracts results due to contracts 2.2.1.b) (i), (ii) combinations and modifications (2.5 ) (7.8 ) (16.1 ) Increase (decrease) of development contracts results due to changes in 2.2.1.b) (iii) performance obligations identification (20.8 ) (32.1 ) (23.8 ) Effect of foreign currency transactions in CTA 1.9 7.3 — Effect of deferred income tax over the adjustments 8.4 12.0 16.4 (13.0 ) (20.6 ) (23.5 ) As of January 1 - restated 4,177.5 3,936.4 3,819.1 a) IFRS 9 - Financial Instruments The Company adopted IFRS 9 - Financial Instruments as a basis for recognition, measurement and classification of financial instruments. This standard replaces IAS 39 - Financial Instruments: Recognition and Measurement. The adoption effects are presented retrospectively as of January 1, 2016 for the comparative periods presented in the consolidated financial statements. The changes made by the Company in its accounting practices resulting from the adoption of this new standard are detailed as follows: (i) Classification and measurement of financial assets and liabilities The Company reviewed the classification of its financial assets within the categories existing in IFRS 9 by evaluating the business model in which the financial assets are managed and the contractual cash flow characteristics. Certain financial investments in structured notes were reclassified from held to maturity category to financial assets measured as at fair value through profit or loss because their cash flows do not represent solely payments of principal and interest. For financial liabilities, there were no changes in their categories in the transition of standards. IFRS 9 mainly retains the IAS 39 requirements for classification and measurement of financial liabilities. The following table sets forth the financial assets and liabilities in the original measurement categories by IAS 39 as previously disclosed on December 31, 2017 and January 1, 2017, and the new measurement categories by adopting of IFRS 9: Financial instruments Note 12.31.2017 Category IAS 39 Categoya IFRS 9 (Restated) Assets Cash and cash equivalents 4 1,270.8 Loans and receivables Amortized cost Financial investments 5 2,617.3 1,307.6 Loans and receivables (iv) Fair value through other comprehensive income 1,199.5 Held to maturity (iv) Fair value through profit or loss 50.5 Held to maturity (iv) Amortized cost 58.8 Available for sale Fair value through profit or loss 0.9 Fair value through profit or loss Fair value through profit or loss Guarantee deposits 10 393.9 Loans and receivables Amortized cost Collateralized accounts receivable 8 288.7 Loans and receivables Amortized cost Contract assets 30 447.5 Loans and receivables Amortized cost Trade accounts receivable, net 6 297.0 Loans and receivables Amortized cost Customer and commercial financing 8 16.4 Loans and receivables Amortized cost Derivative financial instruments 7 34.3 Fair value through profit or loss Fair value through profit or loss Other assets (i) 12 82.2 Loans and receivables Amortized cost Liabilities Loans and financing 19 4,198.5 1,264.3 Liabilities measured at amortized cost and other liabilities (iv) Amortized cost 2,934.2 Liabilities measured at amortized cost and other liabilities Amortized cost Trade accounts payable and others liabilities (ii) 1,502.5 Liabilities measured at amortized cost and other liabilities Amortized cost Financial guarantee and residual value (iii) 23 139.6 108.8 Fair value through profit or loss Fair value through profit or loss 30.8 Liabilities measured at amortized cost and other liabilities Amortized cost Derivative financial instruments 7 8.9 Fair value through profit or loss Fair value through profit or loss (i) Comprises amounts of court-mandated escrow deposits and loans with jointly controlled entity. (i) Comprises amounts of trade accounts payable, other payables and non-recourse (iii) Comprises amounts of residual value guarantees and accounts payable of financial guarantee (Note 23). (iv) In Note 28.1 to the Company’s annual financial statements as of December 31, 2017, certain financial instruments measured as at amortized cost (held to maturity and loans and receivables) were incorrectly disclosed in the explanatory notes as measured at fair value through profit or loss. This correction does not affect the measurement of amounts previously disclosed considering that, despite the incorrect classification in said Note, the instruments were correctly valued according to their nature. Financial instruments Note 01.01.2017 Category IAS 39 Categoya IFRS 9 (Restated) Assets Cash and cash equivalents 4 1,241.5 Loans and receivables Amortized cost Financial investments 5 1,948.7 1,067.9 Loans and receivables (iv) Fair value through other comprehensive income 620.9 Held to maturity (iv) Fair value through other comprehensive income 173.8 Held to maturity (iv) Fair value through profit or loss 51.1 Held to maturity (iv) Amortized cost 35.0 Available for sale Fair value through profit or loss Guarantee deposits 10 511.4 Loans and receivables Amortized cost Collateralized accounts receivable 8 323.3 Loans and receivables Amortized cost Contract assets 30 370.6 Loans and receivables Amortized cost Trade accounts receivable, net 6 336.8 Loans and receivables Amortized cost Customer and commercial financing 8 37.4 Loans and receivables Amortized cost Derivative financial instruments 7 32.1 Fair value through profit or loss Fair value through profit or loss Other assets (i) 12 79.4 Loans and receivables Amortized cost Liabilities Loans and financing 19 3,759.9 1,357.4 Liabilities measured at amortized cost and other liabilities (iv) Amortized cost 2,402.5 Liabilities measured at amortized cost and other liabilities Amortized cost Trade accounts payable and others liabilities (ii) 1,722.4 Liabilities measured at amortized cost and other liabilities Amortized cost Financial guarantee and residual value (iii) 23 188.0 122.2 Fair value through profit or loss Fair value through profit or loss 65.8 Liabilities measured at amortized cost and other liabilities Amortized cost Derivative financial instruments 7 8.4 Fair value through profit or loss Fair value through profit or loss (i) Comprises amounts of court-mandated escrow deposits and loans with jointly controlled entity. (i) Comprises amounts of trade accounts payable, other payables and non-recourse (iii) Comprises amounts of residual value guarantees and accounts payable of financial guarantee (Note 23). (iv) In Note 28.1 to the Company’s annual financial statements as of December 31, 2017, certain financial instruments measured as at amortized cost (held to maturity and loans and receivables) were incorrectly disclosed in the explanatory notes as measured at fair value through profit or loss. This correction does not affect the measurement of amounts previously disclosed considering that, despite the incorrect classification in said Note, the instruments were correctly valued according to their nature. The accounting policies for classification, initial and subsequent measurement of financial assets and liabilities is disclosed in Note 2.2.4. (ii) Impairment of financial assets The Company changed the method of measuring expected losses in financial assets as a result of the adoption of the new standard, which is no longer based on incurred loss (by default) and is based on historical data, as well as expectations of future loss. The Company applied the simplified approach under IFRS 9 to measure expected credit losses, which uses a provision for expected losses for all receivables and contract assets. Expected credit losses of other financial assets measured at amortized cost and fair value through other comprehensive income are monitored periodically by the Company and no losses were identified as of December 31, 2017 and January 1, 2017. (iii) Hedge Accounting The Company decided to keep the IAS 39 standard requirements regarding hedge accounting until the IASB concludes the macro-hedge project. b) IFRS 15 - Revenue from Contracts with Customers The Company adopted IFRS 15 as a basis for revenue recognition and measurement of certain assets, liabilities and cost of sales, replacing the standards IAS 18—Revenue and IAS 11—Construction Contracts, as well as related interpretations. The transiton method is the full retrospective as of January 1, 2016 with the use of certain practical expedients. Consequently, all affected financial statements items (revenues, costs of sales, assets, liabilities and operating expenses) were adjusted retrospectively. The Company opted to use the practical expedients provided by the IFRS 15.C5 (a)(ii) and C5(d), which are transcribed below: “IFRS 15.C5. An entity may use one or more of the following practical expedients when applying this standard retrospectively in accordance with paragraph C3(a): (a) for completed contracts, an entity need not restate contracts that: (i) begin and end within the same annual reporting period; or (ii) are completed contracts at the beginning of the earliest period presented. (d) for all periods presented before the date of initial application, an entity need not disclose the amount of the transaction price allocated to the remaining performance obligations, nor an explanation of when it expects to recognize that amount as revenue.” The following adjustments and reclassifications were made to the consolidated financial statements for the prior year (December 31, 2017) and the beginning of earliest period presented (January 1, 2016) as a result of the change in accounting practices: (i) Combining contracts The Company has certain contracts negotiated with the same customer whose goods and/ or services are a single deliverable (commercial objective) and were entered by more the one entity of Embraer S.A. group, previously measured separately by each legal entity/ subsidiary. The adoption of IFRS 15 identified the need to combine these contracts for revenue recognition. Consequently, there was a need to determine the combined margin of the single performance obligation and to allocate the price, which adjusted the revenue recognition of these combined performance obligations, including provision for onerous contracts, in order to reflect the margin ascertained by the combination of the contracts. (ii) Contract modifications Development contracts signed by subsidiaries other than the Company in subsequent periods to the original agreement with the same customer and which constitute a single commercial objective under IFRS 15 were treated as contractual modifications and recognized jointly with the original agreement on a cumulative basis. (iii) Identifying performance obligations As part of the process of identifying performance obligations under the requirements of IFRS 15, there was a change in the performance obligations in certain contracts. This impact brought the need to redistribute the price of the transaction between the performance obligations of these contracts. Revenue redistribution followed the guidelines provided by the standard on the estimation of an individual selling price (stand alone), using cost plus margin method to price and discount allocation. The determination of individual sales price was made on the basis of observable data or, when not available, based on historical data or projections approved by Management. (iv) Variable consideration IFRS 15 determines that variable consideration changes the allocated price of transaction and affects revenue recognition. Previously, some variable considerations, such as fines and contractual penalties, were recognized as operating income (expenses) instead of decrease revenue, being reclassified in the respective lines for presentation of the consolidated statements of income. The methods for measuring the variable considerations, as well as the restrictions over it have not changed. (v) Costs to obtain a contract Incremental costs incurred by the Company to obtain a contract, such as sales commissions and bank guarantees, were previously recognized as operating income (expenses) because it did not meet the criteria for recognition as assets under previously accounting standards. With the adoption of IFRS 15, these incremental costs incurred exclusively to obtain a contract are capitalized as other assets and amortized when (or as that) revenue is recognized as cost of sales and services, because the Company expects to recover these costs. The impact of this topic in the trasition was reclassification of such costs from operating income (expenses) to the line of cost of sales and services in 2017 and 2016. (vi) Presentation of contract assets and liabilities The Company has reclassified certain assets and liabilities in its consolidated financial statements in order to comply with the terminology set forth in IFRS 15 of assets and liabilities of contracts with customers, being: • Contract assets of US$ 447.5 and US$ 370.6 as of December 31, 2017 and January 1, 2017, respectively, were previously presented as trade accounts receivable; • Contract liabilities of US$ 1,126.6 and US$ 1,244.8 as of December 31, 2017 and January 1, 2017, respectively, were previously presented as customer advances and deferred revenue. IFRS 15 adoption did not bring changes in the judgments made by the Company regarding the period in which the revenues from its sales contracts are recognized. c) IFRIC 22 - Foreign Currency Transactions and Advance Consideration This accounting interpretation came into effect as of January 1, 2018 and provides clarification on the transaction date to be considered for the translation of advances made or received in foreign currency transactions. According to the interpretation, the transaction date of advances paid or received is the effective date on which the entity initially recognizes the advance payment to the supplier or advance received from a customer. The Company decided to adopt the interpretation prospectively, that is, the balances of advances, including the principal amount and their respective accumulated exchange variation, as of December 31, 2017 will be considered as the initial balances of the advances to suppliers and customer advances, and the date of December 31, 2017 as the date of the transaction. |
Functional and presentation currency | 2.2.2 Functional and presentation currency A Company’s functional currency is the currency of the primary economic environment in which it operates and should be the currency that best reflects company’s business and operations. Based on this analysis, management has concluded that the US Dollar (“US$” or “Dollar”) is its functional currency, based on analysis of the following indicators: • Currency that most influences the prices of goods and services; this is the currency in which the sales price of its goods and services are expressed and settled; • Currency of the country whose competitive forces and regulations most influence the Company’s business; • Currency that most influences the costs of providing goods or services, i.e., the currency in which the Company’s costs are normally expressed and settled; and • Currency in which the Company largely obtains funds for financial operations and in which it normally receives for its sales and accumulates cash. |
Transactions in foreign currencies | 2.2.3 Transactions in foreign currencies Transactions in other currencies (other than the functional currency) are translated into the functional currency at the foreign exchange rates in force on the transaction dates. The amounts are updated at the exchange rates of the reporting dates. Foreign exchange gains and losses resulting from this translation (in relation to monetary assets and liabilities indexed in currencies other than the functional currency) are recognized in the consolidated statements of income as foreign exchange gain (loss), net. Customer advances and advances to suppliers for goods and/ or services in foreign currencies are translated to the Company’s functional currency in the transaction date and no subsequent translation is recognized. |
Financial Instruments | 2.2.4 Financial Instruments a) Financial assets a.1) Recognition and measurement Financial assets are recognized when the Company becomes part of the instrument’s contractual arrangements. It is initially measured at fair value, plus transaction costs attributable to their acquisition or issuance, except for instruments measured at fair value through profit or loss (FVTPL), for which these costs are recognized immediately in the consolidated statements of income. The Company classifies its financial assets under the following categories: (i) measured as at amortized cost, (ii) measured as at fair value through other comprehensive income (FVOCI) and (iii) measured at fair value through profit or loss (FVTPL). Financial assets are not reclassified subsequent to initial recognition, unless the Company modifies the business model for the management of these financial assets, in which case all affected assets are reclassified on the first day of the new business model. Financial assets are derecognised when the contractual rights to receive cash flows from the asset expires or are transferred in a transaction in which substantially all the risks and benefits of ownership of the financial asset are transferred by the Company. a.2) Classification and subsequent measurement The Company classifies financial assets as measured at amortized cost only if both criteria are met: • The asset is held within a business model whose objective is to collect the contractual cash flows; and • The contractual terms give rise to cash flows, at specific dates, which relate only to the payments of principal and interest. Financial assets measured as at amortized cost by the Company includes: cash and cash equivalents, certain financial investments, trade accounts receivable, contract assets, collateralized accounts receivable, customer financing, guarantee deposits and other financial assets. Financial assets measured as at fair value through other comprehensive income (FVOCI) are assets held within a business model whose purpose is achieved both through the receipt of contractual cash flows and the sale of financial assets, as well as their contractual terms generate, on specific dates, cash flows that are related only to payments of principal and interest. Changes in fair value of FVOCI financial assets are recognized in accumulated other comprehensive (income) loss in the consolidated changes in shareholders’ equity. Gains or losses due to impairment and exchange variation, including interest calculated using the effective interest method, are recognized in the consolidated statements of income as financial income (expense), net, except for the exchange variation recognized as foreign exchange gain (loss), net. In the derecognition of these financial assets, any amounts accumulated in the consolidated statements of other comprehensive income are reclassified to the consolidated statements of income. All financial assets not classified by the Company as measured at amortized cost or as FVOCI are classified as at fair value through profit or loss (FVTPL). These assets include financial assets held for active and frequent trading and derivative financial instruments. (i) Business model evaluation The Company evaluates the business model objective for the management of financial assets as part of the accounting classification of the instruments. The factors considered in this evaluation are: • The current financial policy and the objectives set for portfolio management, which includes assessing whether the strategy focuses on contractual interest income, maintaining a determined interest rate profile, the relationship between the duration of the financial assets and related liabilities, expected cash outflows, or the collection of cash flows through the sale of underlying financial assets; • How portfolio performance is assessed and reported to Management; • Risks that affect the performance of the business model and how they are managed; • The frequency, volume and timing of assets sales in prior periods, the reasons for such transactions and future expectations. (ii) Evaluation if contractual cash flows are only principal and interest payments To assess whether contractual cash flows are only principal and interest payments, the principal is defined as the fair value of the financial asset at the initial recognition, and interest as a consideration for the time value of money, the credit risk associated with value of principal outstanding during contractual terms, other risks and general costs of loans, as well as a profit margin in the transaction. This evaluation is made by considering the contractual terms of the financial assets, which includes, in addition to evaluating whether the contractual cash flows are only principal and interest payments, the existence of terms that could change the timing or value of the contractual cash flows which would not meet the definition, including: contingent events, terms that can adjust contractual rates, prepayment and extension of due dates, and terms that limit access to cash flows of specific assets. b) Financial liabilities The Company classifies its financial liabilities in the following categories: (i) measured as at amortized cost and (ii) fair value through profit or loss. A financial liability is measured at fair value through profit or loss if it is held for trading or is a derivative financial instrument, and its changes, including interest, is recognized in the consolidated statements of income. Changes in other financial liabilities measured as at amortized cost, including interest and exchange variation, are recognized in the consolidated statements of income under financial income (expenses), net caption, except for the exchange variation recognized as foreign exchange gain (loss), net. Financial liabilities are derecognised when contractual obligations are withdrawn, canceled or expired. The difference between the extinct book value and the consideration paid (including transferred assets or assumed liabilities) is recognized in the consolidated statements of income. |
Cash and cash equivalents and short-term investments | 2.2.5 Cash and cash equivalents and financial investments Cash and cash equivalents include cash in hand, cash in transit (amounts paid by our customers or debtors that are pending release by the intervening bank at the reporting date), bank deposits and highly liquid short-term investments, usually maturing within 90 days of the investment date, readily convertible into a known amount of cash and subject to an insignificant risk of change in value. Amounts related to cash and cash equivalents, which are however not available for use by the Company, are presented within other assets in the consolidated financial statements. Other financial investments with maturities of more than 90 days from the acquisition date are presented as financial investments. |
Trade accounts receivable, net | 2.2.6 Trade accounts receivable, net When making a sale, the Company evaluates its payment terms. If the sale amount is not due/ receipt immediately, which is the case of aircraft sales, it will be recognized in the trade accounts receivable. The amount receivable when the payment is deferred by the customer is adjusted to present value if applicable, identifying an interest rate compatible with the market at the time of sale and applying it to the amount receivable according to the transaction payment terms. The Company does not have trade accounts receivable from customers with a significant financing component. Expected credit losses are recognized using actual credit loss experiences from the last 10 years and follow-up |
Derivative financial instruments and hedge operations | 2.2.7 Derivative financial instruments and hedge operations The Company uses derivative instruments to hedge its operations against the risk of fluctuations in foreign exchange and interest rates; they are not used for speculative purposes. Gains and losses on derivative transactions are recorded monthly in consolidated statements of income, taking into account the realizable value of these instruments (market value). The unearned gains and losses is recognized in the consolidated statements of financial position under derivative financial instruments, and the counterpart in consolidated statements of income under financial income (expense), net, (Note 33), except for operations to hedge exposure to changes in exchange rate or designated as hedge accounting, which is recognized as accumulated other comprehensive income (loss) in shareholders’ equity. |
Hedge accounting | 2.2.8 Hedge accounting Specific derivative transactions contracted to hedge the Company against financial risks are designated to hedge accounting. Different techniques are used in accounting for these derivatives, seeking to eliminate the effects of the volatility caused by such risks. On initial designation of the hedge, the Company formally documents the relationship between hedging instruments and hedged items, including the risk management objectives and the strategy for conducting the transaction, together with the methods used to evaluate the effectiveness of the relationship. The Company continually assesses the contract to conclude whether the instrument is “highly effective” in offsetting changes in fair value of the hedged items during the period for which the hedge is designated, and whether the actual results of each hedge are within an effectiveness range of 80% to 125%. The Company has derivative financial instruments designated as fair value hedges and cash flow hedges, as follows: a) Fair value hedges Changes in the fair value of derivatives designated as fair value hedges are recorded in the consolidated statements of income, in financial income (expenses), net, together with any changes in the fair value of the hedged asset or liability attributable to the hedged risk. The Company only uses fair value hedge accounting to hedge fixed interest risk on borrowings. If the hedge no longer meets the hedge accounting criteria, the fair value of the instrument continues to be recognized in the consolidated statements of income in a specific separate account and the fair value of the hedged item is treated as if it were not hedged and amortized to the consolidated statements of income over the period to maturity. b) Cash flow hedges The Company uses hedge accounting for cash flow hedges in order to hedge itself from cash flow variations attributed to exchange rate variation risk related to a transaction that is likely to affect the Company’s results. The effective portion of changes in the fair value of derivatives designated as cash flow hedges is recognized in the consolidated shareholders’ equity under other comprehensive income (OCI), line of financial instruments. The gain or loss related to the ineffective portion is recognized in the consolidated statements of income as financial income (expense), net. Amounts accumulated in OCI are reclassified to the consolidated statements of income in the periods in which the hedged item affects income or loss for the period. When a cash flow hedge instrument is settled, or no longer meets the criteria for hedge accounting, any cumulative gain or loss in other comprehensive income at that time is realized against income or loss for the period (in the same line as the hedged item) in line with realization of the hedged operation against income or loss for the period. When the hedged transaction is no longer expected to occur, the gain or loss accumulated in OCI is immediately transferred to the consolidated statements of income under financial income (expense), net caption. |
Collateralized accounts receivable and recourse and non-recourse debt | 2.2.9 Collateralized accounts receivable and recourse and non-recourse In structured sales operations, the Company established a Specific Purpose Entity (SPE), which obtained funds from a financial institution, bought aircraft and paid the Company. In turn, this SPE structured financing for the end customer. In view of the right to receive from the end customer for the structured financing, the debt in relation to the funds obtained from the financial institution by the SPE is registered in liabilities as non-recourse In certain other transactions, the customer financed the purchase of an aircraft through a financing agent and the Company provided guarantees for such financing. The Company therefore recognized the asset and liability flow for such transactions. The financial guarantee is eliminated in line with repayment of the financing. |
Inventories | 2.2.10 Inventories The Company’s inventories are largely comprised of raw material, work in progress, spare parts and finished goods. Inventories of raw materials are recognized at acquisition cost. Inventories of work in process comprise raw materials, direct labor, other direct costs and general production costs attributable to the cost of the inventories. Once the products have been completed, they are recognized as finished products. Inventories of raw material and spare parts are recognized as at the weighted average cost. Manufactured aircrafts (finished goods) and work in progress are measured at its individual production cost, which is recognized as cost of sales and services in the consolidated statements of income when aircraft is delivered to the customer. Inventories are assessed periodically to determine whether the net realizable value is higher than its cost and impairment loss is recognized if the book value is higher. The Company periodically assesses the consumption and demand for its inventories and in accordance with established policy, records an expense for estimated losses due to obsolescence in the case of items without activity and for which there is no demand for subsequent periods. Calculation of the probable loss takes into account inventory movement in accordance with the production program and estimated demand and also covers expected losses from excess inventories or obsolete work in process. Probable losses on inventories of spare parts are recognized based on technical obsolescence or items without activity for over two years and for which there is no future demand. The Company holds used aircraft for resale, usually received in trade-in |
Income tax and social contribution | 2.2.11 Income tax and social contribution Tax expenses for the year comprise current and deferred income tax. Income tax is recognized in the consolidated statements of income, except the portion of deferred income tax related to items recognized directly in the consolidated shareholders’ equity in other comprehensive income. The current income tax is calculated at the nominal rates of each country, wherein 34% in Brazil, composed of 25% income tax and 9% social contribution on net income. Deferred income tax is recognized on temporary differences arising between the tax and accounting basis of assets and liabilities. |
Investments | 2.2.12 Investments Investments in associates are recorded and valued in the consolidated financial statements using the equity method of accounting. In the case of exchange variations on foreign investments that use a functional currency other than that used by the Company, such exchange variations are recognized in cumulative translation adjustments on equity, and are only recognized in the consolidated statements of income when the investment is sold or expensed. Unrealized profits on transactions with subsidiaries are completely eliminated in equity calculations, on both sales from the subsidiary to the Company and sales between subsidiaries. Unrealized profits between the Company and its subsidiaries are eliminated in the Company’s consolidated statements of income on sales and cost of sales accounts. Investments in associated entities over which the Company has significant influence are accounted for using the equity method. |
Property, plant and equipment, net | 2.2.13 Property, plant and equipment, net Property, plant and equipment are recognized by the acquisition, formation or construction cost, less accumulated depreciation and impairment losses. Depreciation is calculated by the straight-line method based on the asset’s estimated useful life (Note 15). Land is not depreciated. The estimated useful lives are reviewed and adjusted, if appropriated, at the end of each fiscal year. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company. The Company estimates the residual value for certain aircraft spare parts included in the Exchange Pool Program, which is reviewed by Management, and if necessary adjusted, at the end of each reporting period. The Company does not attribute residual values to other assets as assets are not usually sold and in the event of a sale, the amount is not significant. The items comprising property, plant and equipment are summarized below: a) Land - b) Buildings and land improvements - c) Facilities - d) Machinery and equipment - e) Furniture and fixtures - f) Vehicles - g) Aircraft - h) Computers and peripherals - i) Tooling - j) Property, plant and equipment in progress - k) Exchange pool program - |
Intangible assets, net | 2.2.14 Intangible assets, net a) Development Research costs are recorded as an expense when they are incurred. Project costs, comprised mainly of expenditure on product development, including drawings, engineering designs and construction of prototypes, are recorded as intangible assets when it is probable that the projects will generate future benefits, taking into account their commercial and technological feasibility, availability of technological and financial resources, and only if the cost can be reliably measured. Capitalized development costs are amortized from the time at which benefits begin to accrue (units produced), based on estimated aircraft sales, and the amortized amounts are appropriated to production cost. These estimates are reviewed on an annual basis. The Company has agreements with certain key suppliers, hereby denominated partners, who participate in the Company’s research and development projects by contributing cash. The Company records such contributions as liabilities on receipt and as the milestones are completed and the amounts are consequently no longer subject to return, they are recorded as a reduction of development expenditure, capitalized in intangible assets and amortized on the aircraft production series. b) Computer software Software licenses are capitalized and amortized over their estimated useful lives. Costs associated with maintaining computer software programs are recognized as expense as incurred. Development costs directly attributable to identifiable and unique software, controlled by the Company and that is expected to generate benefits greater than the costs for more than one year, are recorded in intangible assets. |
Impairment of long-lived assets | 2.2.15 Impairment of long-lived assets At the end of each fiscal year, the Company performs impairment test for all cash-generating units (CGUs) with goodwill generated from business combination allocated and for CGUs with intangible assets still under development and not yet producing (undefined useful life). CGUs with definite-lived assets (property, plant and equipament, and intangibles) allocated are analyzed, at each quarter, whether there is any indication it might be impaired to perform the impairment test. Assets are grouped in CGUs taking into consideration the Company’s business model and its monitoring of cash flows. In general, the CGUs are defined in accordance with the families/ platforms of aircrafts or other goods and services produced by the Company, irrespective of its geographic location. The Company applies the value in use concept, using discounted cash flow projections, discounted at an appropriate rate which reflects the investors’ expectations of return. The cash flow projections for the CGUs take into consideration the Company’s medium and long-term strategic plan, based on the characteristics and expectations of the business. Any impairment losses of a CGU are recognized in the consolidated statements of income in the line of other operating income (expense), net and allocated to relevant assets of the impaired CGU. The exception to this concept is aircrafts that the Company held in its property, plant and equipment for operating leases purposes. In this case, the aircraft is tested individually using the higher of its value in use and its market value to determine its recoverable amount. For impairment test purposes, the market value is estimated with the assistance of assessment prepared by third party appraisals and the value in use is determined by the discounted cash flow of lease agreement associated with each aircraft tested, when applicable. |
Leases | 2.2.16 Leases The classification of whether an agreement is or contains a lease is based on the essence of the agreement and whether the agreement transfers the risks and rewards or merely assigns the right to use the asset. a) Aircraft leases Aircraft available for leasing or leased under operating leases are recorded as property, plant and equipment and depreciated over their estimated useful lives. The rental income is recorded by the straight-line method over the lease period. b) Other leases Other leases in which the Company holds substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are recorded as a financed purchase, initially by recording a fixed asset and a financial liability (lease). Property, plant and equipment assets purchased as finance leases are depreciated at the rates disclosed in Note 15. Other leases in which a significant part of the risks and rewards of ownership are assumed by the lessor are classified as operating leases. Payments made for operating leases are appropriated to the consolidated statements of income by the straight-line method over the lease period. |
Loans and financing | 2.2.17 Loans and financing Loans are recognized initially at fair value, net of transaction costs, and subsequently carried at amortized cost (plus charges and interest on a pro rata basis), taking into account the effective interest rate on each transaction. Loans are classified as current or non-current |
Borrowing costs | 2.2.18 Borrowing costs When a substantial period of time is required for construction or production of an asset before it is ready for use, the borrowing costs are capitalized as part of the cost of such assets. The costs are allocated based on the average rate for all active loans, weighted in accordance with additions in the period. Borrowing costs are interest and other costs incurred by the Company in obtaining funding. |
Financial guarantees and residual value guarantees | 2.2.19 Financial guarantees and residual value guarantees In certain cases, the Company grants financial or residual value guarantees on delivery of its aircraft, as part of the aircraft financing structure. The residual amount is guaranteed to the lender based on the expected future value of the aircraft at the end of the funding, subject to a maximum limit, agreed by contract. Financial guarantees are calculated at the time of delivery of the aircraft and recognized as a reduction in sales revenue against contract liabilities. The income is realized in the consolidated statements of income over the aircraft financing period and all deferred income is recognized by the end of that period. To cover the risk of losses on such guarantees, the Company may record an additional provision in the event of significant circumstances, such as a request for judicial reorganization of a client, based on the best estimate of potential losses (Note 23). In some cases, the Company holds guarantees in the form of deposits in favor of third parties to whom financial and residual value guarantees have been provided as part of aircraft financing structures (Note 10). |
Dividends and interest on own capital | 2.2.20 Dividends and interest on own capital Under the Company’s bylaws, shareholders are entitled to dividends or interest on own capital equivalent to 25% of net income for the year, adjusted in accordance with the bylaws. The calculation takes into account the interest on own capital net of withholding tax. Proposed distributions of dividends to shareholders are recorded as a liability in the consolidated financial statements at the end of the year. Any amount over and above the minimum mandatory dividend is recognized in a specific account as additional dividends proposed in the revenue reserve in consolidated shareholders’ equity, until it is approved by the shareholders, at which point the reserve is reversed against a liability in the consolidated financial statements. Interest on own capital paid or provisioned is recorded as a financial expense for tax purposes. However, for purposes of these consolidated financial statements, the amount is recorded as dividend distribution of net income for the year, and the gross amount is reclassified to consolidated shareholders’ equity. |
Unearned income | 2.2.21 Unearned income Unearned income comprises government grants received by the Company and its subsidiaries. Government grants are recognized against the expenses in which the resources were used. When government grants are received in advance for research investments they are recorded as unearned income and recognized in the consolidated statements of income to the extent that the resources are invested and contractual milestones are met, as reduction of research expenses. Government grants for the acquisition of property, plant and equipment are recognized as debt (loans and financing) in liabilities until the milestones determined by the granting entity are met. Once the milestones are completed, the grant is recognized as unearned income. This unearned income is recognized in the consolidated statements of income as a reduction of the depreciation expense of the underlying asset it is proposed to subsidize in proportion with the recognition of the expense. Income earned with non-distributable |
Provisions, contingent assets and liabilities, legal obligations and court-mandated escrow deposit | 2.2.22 Provisions, contingent assets and liabilities, legal obligations and court-mandated escrow deposit Provisions – provisions are recognized based on the judgment of the Company’s Management and its legal counsel, the nature of the lawsuits, legal precedent, complexity and court interpretations, whenever the loss is considered probable, when such loss would result in a probable outflow of resources to settle the obligations and when the amounts involved can be measured with a reasonable degree of certainty, the provision is recognized. The provision for labor claims is recognized based on the Company’s historical percentage of cash outflows of each demand. The amounts provided represent the Company’s best estimate of the anticipated outflow of resources. Contingent liabilities – amounts for which disbursement is classified as possible are disclosed but not recorded in the consolidated financial statements. Where the probability of loss is classified as remote, neither provision nor disclosure are required. Legal obligations – arise from tax liabilities for which the legality or constitutionality is under appeal. The related amounts are fully recognized as provisions in the consolidated financial statements. Court-mandated escrow deposits – recorded as other assets and periodically updated for monetary correction. |
Post-retirement benefits | 2.2.23 Post-retirement benefits a) Defined contribution The Company provides defined contribution pension plans for its employees. For the companies incorporated in Brazil, these are managed by EMBRAER PREV – Sociedade de Previdência Complementar. b) Post-retirement healthcare benefits The Company and some of its subsidiaries provide healthcare benefits to retired employees. The planned costs of offering post-retirement healthcare benefits and coverage for dependents are recorded as a provision during the period of employment based on actuarial studies conducted to identify future exposure, based on the following main premises: i) Discount rate - brings future benefit flows to present value and is defined based on the ratio of Brazilian government securities; ii) Increase of medical costs rate - represents the increase in the value of medical care and is not applied linearly, as the companies historically tend to take measures to reduce the cost, or even change health plan providers; iii) Morbidity rate (aging factor) - measures the increased use of health plans in light of the aging population; iv) Mortality rate - uses the RP-2000 v) Probability of Retirement - estimates the probability of retirement by age group; vi) Churn rate - uses the T-3 The Company recognizes changes in the provision for the plan against other comprehensive income in consolidated shareholders’ equity, net of taxes, to the extent that there are changes in the assumptions and against consolidated statements of income if there are changes in the costs of the current benefit plan or in the plan’s contractual characteristics. This provision is reviewed at least annually. |
Product warranties | 2.2.24 Product warranties Warranty expenditure on aircraft is estimated on delivery of these products. The estimates are based on historical data that includes, among others, warranty claims and related repair/ replacement costs, warranties given by the suppliers, contractual coverage period and warranty patterns for new aircrafts, for which the Company expects higher warranty costs in the launch of new models until the production process matures and increases the platform in service period. The coverage period varies from 3 to 6 years. The Company may be obliged to modify the product to meet the requirements of the certification authorities, or after delivery, due to improvements or to the aircraft’s performance. The costs of such modifications are provisioned when the new requirements or improvements are requested and known. Management reviews the assumptions and the evolution of warranty relates costs periodically, and if appropriated, adjustements to the provision is recorded. The product warranties balances are presented in the provisions caption in the consolidated statements of financial position (Note 24.1). |
Share Based Payment | 2.2.25 Share- based payment The Executive Remuneration Policy (PRE) determines that the remuneration of the Company’s management shall be granted as a Long Term Incentive (ILP in Portuguese) with the objective of retaining and attracting qualified personnel who will make an effective contribution to the Company’s performance. The Company provides two types of share-based remuneration in the form of LTIs: i) Stock options plan (capital instruments based on the Company’s share issues). In this modality, in return for the services provided, the program participants receive stock options, the fair value of which is calculated based on the Black & Scholes pricing model and recognized on a linear basis in the consolidated statements of income during the vesting period, which is the period during which the acquisition criteria are met; ii) Cash-settled phantom shares plan, in which the amounts attributed to the services provided by the participants are converted into virtual share units based on the market value of the Company’s shares. At the end of the acquisition period the participant receives the quantity of virtual shares converted into reais, at the shares’ current market value. The company recognizes the obligation during the acquisition period (quantity of virtual shares proportional to the period) in the same group as the participant’s normal remuneration. This obligation is presented as an account payable to employees and the fair value is calculated based on the market price of the shares and registered as financial income (expense) in the consolidated statements of income. The phantom shares plan is a cash-settled |
Earnings per share | 2.2.26 Earnings per share Basic earnings per common share are computed by dividing net income attributable to Embraer shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share are computed by adjusting the number of shares outstanding to include the number of additional shares that would have been outstanding had the potentially dilutive shares attributable to stock options been put into circulation during the respective periods. |
Revenue recognition of contract with customers | 2.2.27 Revenue recognition of contract with customers Revenue comprises the fair value of the consideration received or to be received for the sale of products and services in the ordinary course of business. Revenue is presented net of taxes, returns, reductions and discounts, and in the consolidated financial statements, after eliminating intercompany sales. a) Revenue from sales of aircraft and spare parts Revenues from aircraft and spare parts sales are recognized when the control, as per IFRS 15, is transferred to the customer, that is, when all recognition conditions are met. Revenues from commercial, executive and agricultural aircraft and spare parts are generally recognized upon delivery or shipment to the customer. In aircraft sales contracts, the Company normally receives customer advances before the product control is transferred. The Company understands that there is no significant financing component in this operation. For the spare parts sale contracts, the client makes the payment after the transfer of control, with average payment term of 30 days. In sales of aircraft contracts, other performance obligations, such as supply of spare parts, training services, technical assistance and other obligations may be presented, which may or may not be delivered simultaneously to the aircraft delivery. For the Commercial and Executive Aviation contracts, the individual selling price is allocated for these additional performance obligations, and the variable considerations (as discounts), are allocated using the cost plus margin method. In the Defense & Security aircraft sales, there is no stand-alone price basis considering its high customization, the price is allocated in the performance obligation considering the cost plus margin method. For these performance obligations, the revenue is recognized when the control of related product or service is transferred to the customer. b) Revenue from sale of services Services sale revenues are recognized at the time of control transfer to the customer, that is, to the extent that services are rendered over time. The performance obligations of such contracts are satisfied and recognized in the consolidated statements of income over time. In the Defense & Security segment, some services, such as modernization services, the client’s payment schedule follow a schedule agreed between the parties. In maintenance service contracts, the Company receives from the clients in an average term of 30 days. Exchange Pool and EEC (Embraer Executive Care) programs revenues are recognized monthly during the contract period, because there is no customer use pattern that can be reliably projected, and consist of a fixed rate and part of a variable rate directly related to the hours actually flown by the aircraft covered in these programs. The payment term usually is 30 days. c) Revenue from development contracts In the Defense & Security segment, there are some operations characterized by the development of products or technologies whose transfer of control occurs over time. In such contracts, their revenues are recognized over time at amounts equal to the ratio of actual cumulative costs incurred at the end of reporting period divided by total estimated costs at completion, multiplied by the allocated price less the cumulative revenue recognized in prior reporting period. Some contracts contain clauses for price adjustment based on pre-established The Company understanding is that the cost incurred method provides the most reliable basis for estimating the progress of contracts whose revenues are recognized over time. In these contracts, there is also a schedule of payments agreed between the Company and the customers, which vary from contract to contract. After analysis, the Company has concluded that there are no significant financing components in the Defense & Security segment contracts since there is no willingness on either side to finance the other and there are factors that are not under the control of any party which may affect the payment dates. d) Contract assets and liabilities The contract assets relate to the Company’s rights to the consideration for the work completed and not billed at the date of the consolidated financial statements, mainly of development contracts that are measured through POC method and net of customer advances received and expected credit losses recognized. Contract assets are transferred to trade accounts receivable when the rights become unconditional. Contract liabilities refer to advance payments received by the Company prior to the delivery of the aircraft, as well as to the supply of spare parts, training, technical assistance and other obligations included in aircraft sales contracts. They also refer to advances of consideration received from customers related to the acceptance of managerial stages/ tasks under development contracts (Defense & Security). e) Costs to obtain a contract Refers to incremental costs incurred by the Company solely to obtain contracts with customers that will be recovered in the fulfillment of these contracts, such as costs incurred with sales commissions and bank guarantees granted in Defense & Security contracts. Assets for obtaining contracts are capitalized as other assets and amortized when (or as) the related contract revenue is recognized. |
Cost of sales and services | 2.2.28 Cost of sales and services Cost of sales and services consists of the cost of the aircraft, spare parts and services rendered, comprising: a) Material - b) Labor - c) Depreciation - d) Amortization - e) Product warranties - f) Multiple-element arrangements - |
Employee profit sharing plan | 2.2.29 Employee profit sharing plan The Company provides a profit sharing plan for its employees, which is linked to performance targets established in action plans set and agreed at the beginning of each year. The profit sharing approved policy is equivalent to 12.5% of net income for the period, may be adjusted annually by Management based on circumnstances. Provisions are recognized monthly by applying the agreed percentage to the payroll of the company, recognized in the consolidated statements of income accounts related to the job performed by each employee. Of the total amount of profit sharing, 50% is divided equally among all the employees and the other 50% in proportion to each employee’s salary. |
Financial income (expenses), net and foreign exchange gains (losses), net | 2.2.30 Financial income (expenses), net and foreign exchange gains (losses), net Financial income (expenses), net and foreign exchange gains (losses), net principally comprise interest income on cash and cash equivalents and financial investments measured as at amortized cost and FVOCI, financial charges on loans, tax updates and foreign exchange gains (losses) on assets and liabilities expressed in currencies other than the functional currency (US dollars), on an accrual basis. Gains or losses on fair value changes of FVTPL financial instruments are also recognized as financial income (expenses), net. Changes in the fair value of the residual value guarantees and income or loss on the provision and implementation of derivative financial instruments capitalized are also recorded as financial income (expense), net in the consolidated statements of income. Financial income and expense exclude borrowing costs attributable to acquisitions, buildings or the contribution of qualifying assets that require a substantial period of time to be ready for use or sale. |
Statement of cash flows | 2.2.31 Statement of cash flows The statement of cash flows was prepared using the indirect method. |
Segment reporting | 2.2.32 Segment reporting Operating segment information is presented in a manner consistent with the internal reports provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources among and assessing the performance of the operating segments and for making strategic decisions, is the chief executive officer. Generally, balances and transactions that are not directly allocated to a specific operating segment are appropriated pro-rata, |
Critical accounting estimates | Preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and adopt assumptions that affect the reported amounts of assets and liabilities, revenue and expense and their disclosure. Therefore, variables and assumptions derived from past experience and other factors deemed relevant were used in preparing accompanying consolidated financial statements included in this report. These estimates and assumptions are reviewed on an ongoing basis and the changes to accounting estimates are recognized in the period in which the estimates are revised on a prospective basis. The significant accounting policies, including the variables and assumptions used in the estimates, and the relevant sensitivity of those judgments to different scenarios and conditions are described below: 3.1. Revenue from contract with customers In the Defense & Security segment, a significant portion of revenue is derived from long-term development contracts with the Brazilian and foreign governments, recognized over time by the cost incurred method (Note 2.2.27), using the ratio of actual cumulative costs incurred divided by total estimated costs at completion for progress measurement. During the course of the contract, the Company assesses the costs incurred, adjusting total estimated costs at completion if necessary to reflect variations in costs in relation to the projection, changes in circumnstances and/ or new events, such as contract modification. Any resulting increase or decrease in estimated revenues or costs at completion is recognized as catch-up During the first half of 2018, in the development contract of KC-390 non-recurring catch-up Should the total estimated costs at completion of contracts in progress be 10% lower than Management’s actual estimates, the revenue recognized in 2018 would increase by US$ 385.9, and if the costs were 10% higher than Management’s estimates, the recognized revenue would decrease by US$ 425.7. 3.2. Residual value guarantees The residual value guarantees granted on aircraft sales may be exercised at the end of a financing contract between a financial agent and the customer/operator of these aircraft. The guarantees are initially measured at fair value and are revised quarterly to reflect changes in relation to the fair value of these commitments. The residual value guarantees may be exercised if the quoted market value is lower than the future fair value guaranteed. The future fair value is estimated in accordance with third party evaluation of the aircraft, including information from sale or leasing of similar aircraft in the secondary market. Refer to Note 26.4.5 for a sensitivity analysis of residual value guarantees. 3.3. Impairment of long-lived assets The impairment test considers the Company’s medium and long-term strategic plan cash flows, brought to present value at an appropriate discount rate compatible with the market and that reflects the shareholders’ expectations of return. In preparing or using this information, the Company uses estimates, as follows: a) Gross expected cash flow - b) Growth rates - c) Discount rates - Impairment of aircraft held in the Company’s property, plant and equipment available for leasing to third parties is measured at fair value less cost to sell or value in use. The assessment of the recoverable amount of such aircraft considers assessment of their fair value in an active market and recognition of impairment if their carrying value is higher than the fair value. If the estimated discount pre-tax 3.4. Fair value of financial instruments The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. The Company uses its judgment to select a variety of methods, using assumptions based on market conditions at the end of each reporting period. The methods and calculations are the same as known valuation techniques normally used by the financial market. Refer to Note 26.4 for sensitivity analysis of financial instruments. 3.5. Income taxes The Company is subject to income taxes in multiple jurisdictions. Significant judgment is required in determining the worldwide provision for income taxes in each jurisdiction the Company operates. There are many transactions and calculations for which the ultimate tax determination is uncertain. The Company also recognizes provisions based on estimates of whether additional taxes will be due. When the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred income tax assets and liabilities in the period in which the final amount is determined. Because the Company’s tax is largely determined in Brazilian reais and its functional currency is the dollar, the income tax expense line is highly sensitive to the effects of changes in exchange rates, particularly those due to changes in non-monetary If the real had devalued or appreciated by 10% against the dollar in relation to the actual exchange rate at December 31, 2018, the deferred income tax expense would have been higher or lower by approximately US$ 148.2. 3.6. Non-current A discontinued operation is a Company’s business component which comprises operations and cash flows that may be clearly distinct and: • Represents a separate major line of business or geographic area of operations; • It is part of a co-ordinated • It is a subsidiary acquired exclusively with a view to resale. The classification of a Company’s operation as discontinued operation is achieved through its disposal, or at the time the transaction meets the criteria of IFRS 5 to have its assets and liabilities classified as held for sale, whichever occurs earlier. An asset or group of assets and liabilities is held for sale when it is expected that its carrying amount will be recovered mainly from the sale transaction rather than continuous use. This occurs if the asset is available for immediate sale under its current conditions, subject only to customary and usual terms for the conclusion of the transaction, when the sale transaction is defined as ‘highly probable’ under the accounting standard. The transaction initiated by the Company and The Boeing Company involving assets of commercial aviation segment will be classified as held for sale and discontinued operation from February 26, 2019, date of shareholders approval on Extraordinary General Shareholders’ Meeting when the ‘highly probable’ criteria was met. As of December 31, 2018, the criteria to classify the operation as an asset held for sale and discontinued operation has not been reached. |
Presentation of the Financial_3
Presentation of the Financial Statements and Accounting Practices (Tables) | 12 Months Ended |
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Summary of Company's Corporates Structure | 2.1.3 Corporate structure Below are informations regarding the Company’s consolidated subsidiaries and joint operations: Entity Participation Country Core activities ELEB – Equipamentos Ltda. 100% Brazil Sale of hydraulic and mechanical equipment for the aviation industry Embraer Aircraft Holding Inc. 100% EUA Concentrates corporate activities in the USA Embraer Aircraft Customer Services, Inc. 100% EUA Sale of spare parts and support services in North America and the Caribbean Embraer Aircraft Maintenance Services Inc. 100% EUA Maintenance of aircraft and components Embraer Business Innovation Center, Inc. 100% EUA Develops technological innovation research in aviation and related areas Embraer Executive Jet Services, LLC 100% EUA After sale support and aircraft maintenance Embraer Executive Aircraft, Inc. 100% EUA Final assembly and delivery of executive jets Embraer Engineering & Technology Center USA, Inc. 100% EUA Engineering services related to aircraft research and development Embraer Aero Seating Technologies, LLC 100% EUA Production and maintenance of aircraft seats Embraer Defense and Security Inc. 100% EUA Supply of Super Tucano aircraft to the American Air Force (LAS) Embraer CAE Training Services LLC 51% EUA Pilot, mechanic and crew training Embraer Aviation Europe - EAE 100% France Concentrates corporate activities abroad, specifically Europe Embraer Aviation International - EAI 100% France Sale of parts and after sale services in Europe, Africa and the Middle East Embraer Europe SARL 100% France Commercial representation of the Company in Europe, Africa and the Middle East Embraer Defesa & Segurança Participações S.A. 100% Brazil Coordinates investments in the Defense & Security segments Atech - Negócios em Tecnologias S.A. 100% Brazil Development and control, communications, computer and intelligence services Visiona Tecnologia Espacial S.A. 51% Brazil Supply of the Brazilian Government’s Geostationary Defense and Strategic Communications Satellite System (SGDC) Visiona Internacional B.V. 100% Holanda Integration and supply of the Brazilian Government’s (SGDC) System . SAVIS Tecnologia e Sistemas S.A. 100% Brazil Operates in Defense and Security with the Brazilian Government Embraer GPX Ltda 100% Brazil Aircraft maintenance services Embraer Netherlands Finance B.V. 100% Holland Financial operations raising and investing funds of the Embraer Group Embraer Netherlands B.V. 100% Holland Concentrates corporate activities abroad Embraer Asia Pacific PTE. Ltd. 100% Singapore After sale services and support in Asia Airholding SGPS S.A. 100% Portugal Coordinates investments in subsidiaries in Portugal OGMA - Indústria Aeronáutica de Portugal S.A. 65% Portugal Aviation maintenance and production Embraer CAE Training Services (UK) Limited 51% United Kingdom No operations Embraer Portugal S.A. 100% Portugal Coordinates investments and economic activities in subsidiaries in Portugal Embraer - Portugal Estruturas Metálicas S.A 100% Portugal Fabrication of steel parts and products for the aviation industry Embraer - Portugal Estruturas em Compósitos S.A. 100% Portugal Fabrication of composite parts and products for the aviation industry Embraer (China) Aircraft Technical Services Co. Ltd. 100% China Sales and maintenance for after sales support in China EZ Air Interior Limited 50% Ireland Fabrication of interiors for commercial aircraft Embraer Overseas Ltd. 100% Cayman Islands Financial operations raising and investing funds of the Embraer Group Embraer Spain Holding Co. SL 100% Spain Concentrates corporate activities abroad ECC Investment Switzerland AG 100% Switzerland Coordinates investments in subsidiaries abroad ECC Insurance & Financial Company Limited. 100% Cayman Islands Covers financial guarantees offered in aircraft sale structuring Embraer Finance Ltd. 100% Cayman Islands Support to the Company in structuring specific operations Embraer Merco S.A. 100% Uruguay No operations -in |
Summary of Impacts of Adoption of IFRS 9, IFRS 15 and IFRSIC 22 on Consolidated Financial Statements | Consolidated Statements of Financial Position As of December 31, 2017 Published IFRS 15 IFRS 9 Restated Financial investments 2,365.6 — 0.5 2,366.1 Trade accounts receivables, net 717.2 (432.8 ) 12.6 297.0 Contract assets — 447.5 — 447.5 Other current assets 3,969.0 — — 3,969.0 Total Current Assets 7,051.8 14.7 13.1 7,079.6 Financial investments 251.3 — (0.1 ) 251.2 Deferred income tax and social contribution 2.9 13.0 (2.5 ) 13.4 Investments 5.6 — — 5.6 Other non-current 4,624.8 — — 4,624.8 Total Non-Current 4,884.6 13.0 (2.6 ) 4,895.0 TOTAL ASSETS 11,936.4 27.7 10.5 11,974.6 Contract liabilities — 1,001.1 — 1,001.1 Advances from customers 799.2 (799.2 ) — — Provisions 141.4 (17.3 ) — 124.1 Unearned income 164.1 (164.1 ) — — Other current liabilities 1,678.0 — — 1,678.0 Total Current Liabilities 2,782.7 20.5 — 2,803.2 Contract liabilities — 125.5 — 125.5 Advances from customers 104.1 (104.1 ) — — Deferred income tax and social contribution 251.4 4.6 2.0 258.0 Unearned income 97.5 (5.8 ) — 91.7 Other non-current 4,518.7 — — 4,518.7 Total Non-Current 4,971.7 20.2 2.0 4,993.9 Equity 4,182.0 (13.0 ) 8.5 4,177.5 TOTAL LIABILITIES 11,936.4 27.7 10.5 11,974.6 As of December 31, 2016 Published IFRS 15 IFRS 9 Restated Financial investments 1,775.5 — 0.1 1,775.6 Trade accounts receivables, net 665.3 (345.1 ) 16.6 336.8 Contract assets — 370.6 — 370.6 Other current assets 4,340.6 — — 4,340.6 Total Current Assets 6,781.4 25.5 16.7 6,823.6 Financial investments 168.3 — 4.8 173.1 Deferred income tax and social contribution 3.6 10.7 (2.7 ) 11.6 Other non-current 4,711.5 — — 4,711.5 Total Non-Current 4,883.4 10.7 2.1 4,896.2 TOTAL ASSETS 11,664.8 36.2 18.8 11,719.8 Contract liabilities — 1,086.8 — 1,086.8 Advances from customers 716.4 (716.4 ) — — Provisions 135.8 (11.9 ) — 123.9 Unearned income 311.5 (311.5 ) — — Other current liabilities 2,017.2 — — 2,017.2 Total Current Liabilities 3,180.9 47.0 — 3,227.9 Contract liabilities — 157.9 — 157.9 Advances from customers 139.8 (139.8 ) — — Deferred income tax and social contribution 263.5 (1.3 ) 3.0 265.2 Unearned income 113.9 (7.0 ) — 106.9 Other non-current 4,025.5 — — 4,025.5 Total Non-Current 4,542.7 9.8 3.0 4,555.5 Equity 3,941.2 (20.6 ) 15.8 3,936.4 TOTAL LIABILITIES 11,664.8 36.2 18.8 11,719.8 As of January 1, 2016 Published IFRS 15 IFRS 9 Restated Trade accounts receivables, net 781.9 (360.6 ) 8.9 430.2 Contract assets — 387.7 — 387.7 Other current assets 5,629.7 — — 5,629.7 Total Current Assets 6,411.6 27.1 8.9 6,447.6 Financial investments 749.6 — (9.0 ) 740.6 Deferred income tax and social contribution 4.5 14.2 (3.0 ) 15.7 Other non-current 4,503.8 — — 4,503.8 Total Non-Current 5,257.9 14.2 (12.0 ) 5,260.1 TOTAL ASSETS 11,669.5 41.3 (3.1 ) 11,707.7 Contract liabilities — 1,136.8 — 1,136.8 Advances from customers 743.8 (743.8 ) — — Provisions 95.7 (6.0 ) — 89.7 Unearned income 320.0 (320.0 ) — — Other current liabilities 1,920.9 — — 1,920.9 Total Current Liabilities 3,080.4 67.0 — 3,147.4 Contract liabilities — — — — Advances from customers 164.1 (164.1 ) — — Deferred income tax and social contribution 417.3 (2.2 ) (2.0 ) 413.1 Unearned income 62.8 164.1 — 226.9 Other non-current 4,101.2 — — 4,101.2 Total Non-Current 4,745.4 (2.2 ) (2.0 ) 4,741.2 Equity 3,843.7 (23.5 ) (1.1 ) 3,819.1 TOTAL LIABILITIES 11,669.5 41.3 (3.1 ) 11,707.7 Consolidated Statements of Income Year ended December 31, 2017 Published IFRS 15 IFRS 9 Restated Revenue 5,839.3 20.1 — 5,859.4 Cost of sales and services (4,773.3 ) 9.2 — (4,764.1 ) Gross Profit 1,066.0 29.3 — 1,095.3 Operating income (expense) (736.7 ) (12.7 ) (4.0 ) (753.4 ) Operating profit 329.3 16.6 (4.0 ) 341.9 Financial result (41.0 ) — 7.0 (34.0 ) Profit before taxes on income 288.3 16.6 3.0 307.9 Income tax expense (income) (25.5 ) (3.6 ) 1.2 (27.9 ) Net income 262.8 13.0 4.2 280.0 Atributable to: Owners of Embraer 246.8 13.0 4.2 264.0 Noncontrolling interest 16.0 — — 16.0 Earnings per share-basic in US$ 0.34 0.36 Earnings per share-diluted in US$ 0.34 0.36 Year ended December 31, 2016 Published IFRS 15 IFRS 9 Restated Revenue 6,217.5 (13.6 ) — 6,203.9 Cost of sales and services (4,980.7 ) (1.3 ) — (4,982.0 ) Gross Profit 1,236.8 (14.9 ) — 1,221.9 Operating income (expense) (1,030.8 ) 14.9 7.7 (1,008.2 ) Operating profit 206.0 — 7.7 213.7 Financial result (47.0 ) — 13.9 (33.1 ) Profit before taxes on income 159.0 — 21.6 180.6 Income tax expense (income) 8.7 (4.4 ) (4.6 ) (0.3 ) Net income 167.7 (4.4 ) 17.0 180.3 Atributable to: Owners of Embraer 166.1 (4.4 ) 17.0 178.7 Noncontrolling interest 1.7 — — 1.7 Earnings per share-basic in US$ 0.23 0.24 Earnings per share-diluted in US$ 0.23 0.24 Reconciliation of restated Consolidated Statements of Changes in Shareholders’ Equity Note 2018 2017 2016 As of December 31 of the previous year - originally published 4,182.0 3,941.2 3,843.7 IFRS 9 Adjustment Decrease of accounts receivable impairment allowance 2.2.1.a)(ii ) 12.6 16.6 8.9 Adjustment to fair value due to change in classification 2.2.1.a) (i ) 0.4 4.9 (9.0 ) Financial asset reclassification from available for sale to fair value through P&L - from Other cumulative translation adjustments (OCI) (11.5 ) — — - to Retained earnings 11.5 — — Effect of deferred income tax over the adjustments (4.5 ) (5.7 ) (1.0 ) 8.5 15.8 (1.1 ) IFRS 15 Adjustment Increase (decrease) of development contracts results due to contracts 2.2.1.b) (i), (ii) combinations and modifications (2.5 ) (7.8 ) (16.1 ) Increase (decrease) of development contracts results due to changes in 2.2.1.b) (iii) performance obligations identification (20.8 ) (32.1 ) (23.8 ) Effect of foreign currency transactions in CTA 1.9 7.3 — Effect of deferred income tax over the adjustments 8.4 12.0 16.4 (13.0 ) (20.6 ) (23.5 ) As of January 1 - restated 4,177.5 3,936.4 3,819.1 |
Summary of Financial Assets and Liabilities in the Original Measurement Categories by IAS 39 as Previously and the New Measurement Categories by Adopting of IFRS 9 | The following table sets forth the financial assets and liabilities in the original measurement categories by IAS 39 as previously disclosed on December 31, 2017 and January 1, 2017, and the new measurement categories by adopting of IFRS 9: Financial instruments Note 12.31.2017 Category IAS 39 Categoya IFRS 9 (Restated) Assets Cash and cash equivalents 4 1,270.8 Loans and receivables Amortized cost Financial investments 5 2,617.3 1,307.6 Loans and receivables (iv) Fair value through other comprehensive income 1,199.5 Held to maturity (iv) Fair value through profit or loss 50.5 Held to maturity (iv) Amortized cost 58.8 Available for sale Fair value through profit or loss 0.9 Fair value through profit or loss Fair value through profit or loss Guarantee deposits 10 393.9 Loans and receivables Amortized cost Collateralized accounts receivable 8 288.7 Loans and receivables Amortized cost Contract assets 30 447.5 Loans and receivables Amortized cost Trade accounts receivable, net 6 297.0 Loans and receivables Amortized cost Customer and commercial financing 8 16.4 Loans and receivables Amortized cost Derivative financial instruments 7 34.3 Fair value through profit or loss Fair value through profit or loss Other assets (i) 12 82.2 Loans and receivables Amortized cost Liabilities Loans and financing 19 4,198.5 1,264.3 Liabilities measured at amortized cost and other liabilities (iv) Amortized cost 2,934.2 Liabilities measured at amortized cost and other liabilities Amortized cost Trade accounts payable and others liabilities (ii) 1,502.5 Liabilities measured at amortized cost and other liabilities Amortized cost Financial guarantee and residual value (iii) 23 139.6 108.8 Fair value through profit or loss Fair value through profit or loss 30.8 Liabilities measured at amortized cost and other liabilities Amortized cost Derivative financial instruments 7 8.9 Fair value through profit or loss Fair value through profit or loss (i) Comprises amounts of court-mandated escrow deposits and loans with jointly controlled entity. (i) Comprises amounts of trade accounts payable, other payables and non-recourse (iii) Comprises amounts of residual value guarantees and accounts payable of financial guarantee (Note 23). (iv) In Note 28.1 to the Company’s annual financial statements as of December 31, 2017, certain financial instruments measured as at amortized cost (held to maturity and loans and receivables) were incorrectly disclosed in the explanatory notes as measured at fair value through profit or loss. This correction does not affect the measurement of amounts previously disclosed considering that, despite the incorrect classification in said Note, the instruments were correctly valued according to their nature. Financial instruments Note 01.01.2017 Category IAS 39 Categoya IFRS 9 (Restated) Assets Cash and cash equivalents 4 1,241.5 Loans and receivables Amortized cost Financial investments 5 1,948.7 1,067.9 Loans and receivables (iv) Fair value through other comprehensive income 620.9 Held to maturity (iv) Fair value through other comprehensive income 173.8 Held to maturity (iv) Fair value through profit or loss 51.1 Held to maturity (iv) Amortized cost 35.0 Available for sale Fair value through profit or loss Guarantee deposits 10 511.4 Loans and receivables Amortized cost Collateralized accounts receivable 8 323.3 Loans and receivables Amortized cost Contract assets 30 370.6 Loans and receivables Amortized cost Trade accounts receivable, net 6 336.8 Loans and receivables Amortized cost Customer and commercial financing 8 37.4 Loans and receivables Amortized cost Derivative financial instruments 7 32.1 Fair value through profit or loss Fair value through profit or loss Other assets (i) 12 79.4 Loans and receivables Amortized cost Liabilities Loans and financing 19 3,759.9 1,357.4 Liabilities measured at amortized cost and other liabilities (iv) Amortized cost 2,402.5 Liabilities measured at amortized cost and other liabilities Amortized cost Trade accounts payable and others liabilities (ii) 1,722.4 Liabilities measured at amortized cost and other liabilities Amortized cost Financial guarantee and residual value (iii) 23 188.0 122.2 Fair value through profit or loss Fair value through profit or loss 65.8 Liabilities measured at amortized cost and other liabilities Amortized cost Derivative financial instruments 7 8.4 Fair value through profit or loss Fair value through profit or loss (i) Comprises amounts of court-mandated escrow deposits and loans with jointly controlled entity. (i) Comprises amounts of trade accounts payable, other payables and non-recourse (iii) Comprises amounts of residual value guarantees and accounts payable of financial guarantee (Note 23). (iv) In Note 28.1 to the Company’s annual financial statements as of December 31, 2017, certain financial instruments measured as at amortized cost (held to maturity and loans and receivables) were incorrectly disclosed in the explanatory notes as measured at fair value through profit or loss. This correction does not affect the measurement of amounts previously disclosed considering that, despite the incorrect classification in said Note, the instruments were correctly valued according to their nature. |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of Cash and Cash Equivalents | 12.31.2018 12.31.2017 Cash and banks 125.4 383.4 125.4 383.4 Cash equivalents Private securities (i) 352.6 219.4 Fixed deposits (ii) 802.9 668.0 1,155.5 887.4 1,280.9 1,270.8 (i) Applications in Bank Deposit Certificates (CDB’s), issued by financial institutions in Brazil, available for redemption in up to 90 days without impact on contracted remuneration; (ii) Fixed term deposits in US Dollars with original maturities of 90 days or less. |
Financial investments (Tables)
Financial investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of Financial Instruments | 12.31.2018 12.31.2017 (Restated) Amortised Fair value Fair value Total Amortised Fair value Fair value Total Financial instruments Private securities (i) — 50.4 — 50.4 — 516.0 0.6 516.6 Structured Notes (ii) 48.8 — 1,308.0 1,356.8 50.5 — 1,199.6 1,250.1 Fixed Deposits (iii) — 457.3 0.1 457.4 — 791.6 — 791.6 Investment funds — — 2.4 2.4 — — — — Other (iv) — — 59.9 59.9 — — 59.0 59.0 48.8 507.7 1,370.4 1,926.9 50.5 1,307.6 1,259.2 2,617.3 Current portion 1.1 507.7 1,234.6 1,743.4 1.3 1,307.6 1,057.2 2,366.1 Non-current 47.7 — 135.8 183.5 49.2 — 202.0 251.2 (i) Private securities, being: investments in Financial Bills, investments in Bank Deposit Certificates and Committed Transactions issued by Brazilian financial institutions, issued with maturities of more than 90 days. (ii) Structured notes, mainly comprised of: • Amount of US$ 1,103.7 (US$ 855.1 as of December 31, 2017), with credit risk of the issuing financial institution and the Brazilian government. • Amount of US$ 83.2 (US$ 222.2 as of December 31, 2017). In 2004, seeking to ensure profitability compatible with the term of guarantee deposit, the Company invested principal of US$ 123.4 in 15-year This yield enhancement was obtained through a credit default swap (CDS), a transaction which provides the right of early redemption of the note in the case of default by the Company. Upon such default, the note may be redeemed by the holder at its market value or its original face value, which would result in a loss to the Company of all interest accrued to that date. Default events that can bring forward the due date for the notes includes: (a) bankruptcy or insolvency of the Company and (b) failure to pay or restructuring of Company debts in financing contracts. In the event of default, the maturity dates of these notes will be brought forward and the notes will be realized at market value, limited to a minimum of the amounts originally invested. Any amount by which the market value exceeds the amount invested will be paid to the Company in the form of bonds, or loans of that amount. (iii) Fixed-term deposits in US dollars issued by financial institutions, with maturities of more than 90 days from the contract date. (iv) Refers to the shares of newly created Republic Airways Holdings, as a result of Republic Airways’ request for bankruptcy. These shares were received by the Company as part of the entity restructuring plan (see Note 23—Financial Guarantees). |
Trade accounts receivable, net
Trade accounts receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of Trade Accounts Receivable, Net | 12.31.2018 12.31.2017 01.01.2017 (Restated) (Restated) Foreign customers 325.7 306.3 305.0 Brazilian Air Force 21.8 14.4 9.1 Domestic customers 15.5 29.2 64.3 363.0 349.9 378.4 Allowance for doubtful accounts (45.0 ) (52.9 ) (41.6 ) 318.0 297.0 336.8 |
Summary of Past Due Accounts Receivable | The amounts and maturities of these trade accounts receivable are shown below: 12.31.2018 12.31.2017 01.01.2017 (Restated) (Restated) Current 217.0 223.6 279.6 Up to 90 days 52.6 48.6 49.6 From 91 to 180 days 13.6 15.7 19.5 More than 180 days 79.8 62.0 29.7 363.0 349.9 378.4 |
Summary of Changes in Estimated Losses on Settlement | Changes in estimated credit losses year over year are shown below: 12.31.2018 12.31.2017 01.01.2017 (Restated) (Restated) Beginning balance (52.9 ) (41.6 ) (38.4 ) Additions (5.8 ) (22.1 ) (36.0 ) Reversal 17.7 9.9 12.5 Write-off 3.6 5.2 10.3 Foreign exchange variation (7.6 ) (4.3 ) 10.0 Ending balance (45.0 ) (52.9 ) (41.6 ) |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of Derivative Financial Instruments | Purpose Risk Counterparty Settlement 12.31.2018 12.31.2017 Derivatives designated as hedge accounting Expenses in Brazilian Reais (i) Exchange rate Citibank BofaMLynch Santander BNP Paribas Bradesco Itau BBA 2019 (1.9) 0.8 Export financing (ii) Interest rate Bradesco BofaMLynch Santander — — 3.7 Project development (ii) Interest rate Itau BBA Votorantim BofaMLynch Santander HSBC Société Générale Safra Morgan Stanley S/A Bradesco 2023 0.3 0.3 Investments Interest rate Bradesco Santander BNP Paribas — — (1.1) Export Exchange rate and Interest rate Santander — — (0.1) Export (iii) Interest rate Itau BBA 2027 2.3 0.5 Other Derivatives 1.2 24.8 Recourse and non-recourse Interest rate Natixis 2022 0.3 1.0 Acquisition of property, plant and equipment (v) Interest rate Compass Bank 2024 (0.1) (0.2) Export (vi) Exchange rate Santander Totta Natixis BNP Paribas 2019 — — 0.2 0.6 1.4 25.4 (i) Zero-cost collar financial instruments, designated as cash flow hedge, in the total amount of US$ 296.7, through purchase of a put option at the weighted average exercise price of R$ 3.43 and through the sale of a call option at the weighted average exercise price of R$ 4.10 for the year of 2019. (ii) Interest rate swap, designated as fair value hedge, of US$ 277.6 related to the Export and Project Development debt lines, subject to a weighted average fixed interest rate of 4.51% p.a. to a weighted average floating rate equivalent to 34.49% p.a. of CDI index (Interbank Deposit Certificate). (iii) Interest rate swap, designated as cash flow hedge, which converted 6-month (iv) Interest rate swap, which converted the amount of US$ 7.3 of recourse and non-recourse (v) Interest rate swap, related to operation in the amount of US$ 3.2, which converted a floating interest rate of LIBOR 1 month + 2.44% p.a. for fixed rate of 5.23% p.a. (vi) Non-deliverable |
Summary of Fair Value of Derivative Financial Instruments | As of December 31, 2018 and 2017, the fair value of the derivative financial instruments was recorded in the consolidated statements of financial position as follows: 12.31.2018 12.31.2017 Assets Current portion 5.4 29.5 Non-current 4.1 4.8 Liabilities Current portion (8.1 ) (8.8 ) Non-current — (0.1 ) Net derivative financial instruments 1.4 25.4 |
Collateralized accounts recei_2
Collateralized accounts receivable and recourse and non-recourse debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of Collateralized Accounts Receivable | 9.1 Collateralized accounts receivable 12.31.2018 12.31.2017 Estimated residual value of leased assets 215.8 215.6 Minimum lease payments receivable 122.6 127.6 Guaranteed operation (cash inflow) 27.0 42.7 Impairment (i) (129.5 ) (97.2 ) Investment in sales-type lease 235.9 288.7 Current portion 218.5 185.6 Non-current 17.4 103.1 (i) The amount recognized relates to the devaluation of assets linked to structured financing . |
Summary of Amounts Classified As Non-Current Assets | As of December 31, 2018, the maturities of the amounts classified as non-current Year 2019 3.7 2020 3.9 2021 4.0 2022 2.6 Thereafter 2022 3.2 17.4 |
Summary of Recourse and Non-Recourse Debt | 9.2 Recourse and non-recourse 12.31.2018 12.31.2017 Recourse debt 330.6 347.0 Non-recourse 10.8 17.1 341.4 364.1 Current portion 324.0 17.6 Non-current 17.4 346.5 |
Summary of Maturities of the Amounts Classified As Non-Current Liabilities | As of December 31, 2018, the maturities of the amounts classified as non-current Year 2019 3.7 2020 3.9 2021 4.0 2022 2.6 Thereafter 2022 3.2 17.4 |
Guarantee deposits (Tables)
Guarantee deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of Guarantee Deposits | 12.31.2018 12.31.2017 Sales financing guarantees (i) 314.4 321.4 Sales structure guarantees (ii) 25.3 60.8 Other 10.0 11.7 349.7 393.9 Current portion 339.9 0.1 Non-current 9.8 393.8 (i) Dollar-denominated financial investments linked to sales structures until the completion of these structures and settlement of the recourse and non-recourse (ii) US dollar amounts deposited in an escrow account as collateral for the financing of certain aircraft sold where Embraer serves as secondary guarantor. If the initial guarantor of the debt (unrelated party) is required to pay the lender, the initial guarantor will be entitled to the amount in the escrow account in proportion to their guarantee. The amount is returned in the form of cash to the Company at maturity of the financing contracts if the aircraft purchaser does not default on the loan. The interest on the escrow account is added to the principal and recognized by the Company as financial income. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of Inventories | 12.31.2018 12.31.2017 Raw materials 897.6 865.6 Work in process 891.6 612.4 Spare parts 424.3 405.2 Finished goods (i) 146.4 89.9 Held by third parties 108.7 82.3 Inventory in transit 91.1 85.2 Consumption materials 48.3 47.6 Used aircraft (ii) 46.0 102.0 Advances to suppliers 31.4 28.9 Loss on adjustment to market value (iii) (7.7 ) (17.2 ) Loss due to obsolescence (iv) (170.7 ) (153.2 ) 2,507.0 2,148.7 |
Summary of Provision Recorded for Adjustment to Realizable Value | (iii) Refers to the provision recorded for adjustments to the realizable value of used aircraft, as follows: 12.31.2018 12.31.2017 12.31.2016 Beginning balance (17.2 ) (19.9 ) (25.4 ) Additions (8.8 ) (8.2 ) (14.0 ) Disposals 18.3 10.9 19.5 Ending balance (7.7 ) (17.2 ) (19.9 ) |
Schedule of Inventories Provision for Obsolescence | (iv) Changes in the provision for obsolescence were as follows: 12.31.2018 12.31.2017 12.31.2016 Beginning balance (153.2 ) (138.1 ) (161.2 ) Additions (59.8 ) (48.7 ) (59.8 ) Disposals 41.5 37.0 83.7 Foreign exchange loss 0.8 (3.4 ) (0.8 ) Ending balance (170.7 ) (153.2 ) (138.1 ) |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of Other Assets | 12.31.2018 12.31.2017 Taxes recoverable (i) 132.2 171.0 Other debtors (ii) 61.6 53.5 Court-mandated escrow deposits (iii) 43.0 62.5 Prepaid expenses 24.3 22.4 Loan with a joint operation (iv) 23.2 19.7 Advances to employees 8.5 12.5 Advances for services to be rendered 3.2 11.5 Other 13.0 23.7 309.0 376.8 Current portion 203.4 255.3 Non-current 105.6 121.5 (i) Taxes recoverable 12.31.2018 12.31.2017 ICMS (State Value-added Tax) and IPI (Excise Tax) 85.5 96.3 PIS (Social Integration Program) and COFINS (Contribution for Social Security) 24.5 51.1 Income tax and social security on net income withheld 7.7 8.8 ISS (Service tax) 5.9 6.3 Other 8.6 8.5 132.2 171.0 Current portion 93.7 120.4 Non-current 38.5 50.6 (ii) Corresponds mainly to rework done on products supplied by third parties, which will be reimbursed according to the contractual terms and credits negotiated with certain suppliers that will be consumed over time from other receivables from suppliers. (iii) Refers to deposits arising from lawsuits, substantially to federal taxes and contributions (Note 22). (iv) Corresponds to the jointly controlled operation of the Embraer group (Note 2.1.2), where only assets and liabilities under the Company’s liability are consolidated. In this way, the amount presented, refers to the balance of loan receivable from the other partner of EZ Air Interior Limited. |
Interest in entities (Tables)
Interest in entities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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Summary of Subsidiaries with Participation of Non-Controlling Shareholders | Non-controlling Entity Country Participation Participation OGMA - Indústria Aeronática de Portugal S.A. Portugal 65.0 % 35.0 % Embraer CAE Training Services Ltd. United Kingdom 51.0 % 49.0 % Visiona Tecnologia Espacial S.A. Brazil 51.0 % 49.0 % Embraer CAE Training Services United States of America 51.0 % 49.0 % |
Summary of Financial Position of the Group Entities that have Non-Controlling Interest | The financial position of the most significant entity of the group with non-controlling 12.31.2018 12.31.2017 01.01.2017 Cash and cash equivalents 12.9 11.1 23.7 Current assets 168.9 207.9 155.1 Non current assets 61.0 66.0 55.4 Current liabilities 74.5 117.4 76.5 Non current liabilities 0.1 0.9 7.3 Noncontrolling interest 54.3 54.4 44.2 12.31.2018 12.31.2017 12.31.2016 (Restated) (Restated) Revenue 240.5 222.1 216.3 Net income for the year 9.6 12.3 11.2 |
Summary of Net Assets and Liabilities of the Joint Operation | 12.31.2018 12.31.2017 01.01.2017 Cash and cash equivalents 1.3 1.2 1.4 Current assets 24.5 28.8 27.7 Non current assets 8.0 7.1 5.4 Current liabilities 13.1 48.2 24.6 Non current liabilities 41.5 4.4 25.4 12.31.2018 12.31.2017 12.31.2016 (Restated) (Restated) Revenue 48.4 42.0 47.4 Net income (loss) for the year (5.4 ) 0.1 (9.3 ) |
Related parties (Tables)
Related parties (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Balances and Transactions With Related Parties | 14.1.1 December 31, 2018 Current Non-current Financial Operating Assets Liabilities Assets Liabilities Results Results Banco do Brasil S.A. 326.2 314.3 9.4 — (4.2 ) — Banco Nacional de Desenvolvimento Econômico e Social – BNDES — 71.8 — 119.7 (8.3 ) — Caixa Econômica Federal — — — — 0.2 — Brazilian Air Force 42.3 90.3 — — — (176.2 ) Marinha do Brasil 0.9 — — — — (12.6 ) Embraer Prev – Sociedade de Previdência Complementar — 0.2 — — — (14.4 ) Brazilian Army — 4.3 — — — — Financiadora de Estudo e Projetos – FINEP — 13.0 — 43.5 (2.3 ) — 369.4 493.9 9.4 163.2 (14.6 ) (203.2 ) 14.1.2 December 31, 2017 Current Non-current Financial Operating Assets Liabilities Assets Liabilities Results Results Banco do Brasil S.A. 227.2 92.9 330.8 319.5 (0.5 ) — Banco Nacional de Desenvolvimento Econômico e Social – BNDES — 88.4 — 219.0 (14.7 ) — Brazilian Air Force 314.1 90.3 — — — (23.7 ) Marinha do Brasil 6.6 — — — — (6.2 ) Caixa Econômica Federal 9.8 — — — — — Embraer Prev - Sociedade de Previdência Complementar — 0.2 — — — (22.9 ) Brazilian Army — 11.1 — — — (1.2 ) Financiadora de Estudo e Projetos – FINEP — 15.7 — 64.6 (2.9 ) — 557.7 298.6 330.8 603.1 (18.1 ) (54.0 ) 14.1.3 December 31, 2016 12.31.2016 Financial Operating Banco do Brasil S.A. (2.8 ) — Banco Nacional de Desenvolvimento Econômico e Social – BNDES (18.6 ) — Brazilian Air Force — 25.6 Marinha do Brasil — (2.7 ) Caixa Econômica Federal 28.5 — Embraer Prev – Sociedade de Previdência Complementar — (23.2 ) Brazilian Army — 5.0 Financiadora de Estudo e Projetos – FINEP (2.9 ) — Telecomunicações Brasileiras S.A. - Telebrás — (2.1 ) 4.2 2.6 |
Summary of Remuneration of Key Management Personnel | 14.3 Remuneration of key management personnel: 12.31.2018 12.31.2017 Short-term benefits (i) 10.0 10.1 Share based payment 3.3 2.4 Labor contract termination 1.0 1.1 14.3 13.6 (i) Includes wages, salaries, profit sharing, bonuses and indemnities. |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Weighted Average Rate | The annual weighted average rates by asset class are shown below. This information is based on the consolidated depreciation of the assets recognized in the year, compared, after annualization and elimination of any non-typical Class of assets Weighted average depreciation rate (%) 12.31.2018 12.31.2017 Buildings and improvements 3.8 % 4.6 % Installations 4.9 % 5.5 % Machinery and equipment 10.0 % 13.0 % Furniture and fixtures 9.3 % 11.8 % Vehicles 22.7 % 27.7 % Aircraft 11.0 % 8.0 % Computers and peripherals 27.6 % 28.2 % Tooling 16.5 % 16.4 % Other assets 0.1 % 0.7 % Exchange pool program assets 3.7 % 3.8 % |
Summary of Property Plant and Equipment | 12.31.2018 Land Buildings and Installations Machinery Furniture and Vehicles Aircraft Computers and Tooling Other Exchange Construction Total Cost At December 31, 2017 11.0 741.8 161.4 971.8 74.9 17.5 193.2 190.3 620.9 26.0 672.5 76.5 3,757.8 Additions — 1.3 — 28.5 1.9 0.5 10.2 6.3 16.6 1.4 46.3 41.3 154.3 Disposals — (10.9 ) (0.9 ) (36.5 ) (2.1 ) (0.5 ) (0.3 ) (6.4 ) (1.7 ) — (20.2 ) (0.7 ) (80.2 ) Impairment(ii) — — — (0.3 ) — — (6.0 ) — (2.5 ) — — — (8.8 ) Reclassifications* — 19.3 2.1 8.8 (0.1 ) — (120.8 ) 0.9 0.5 0.2 (31.8 ) (26.7 ) (147.6 ) Interest on capitalized assets — — — — — — — — — — — 4.8 4.8 Translation adjustments — (1.4 ) (0.2 ) 0.1 (0.4 ) (0.2 ) (0.1 ) (1.1 ) (4.7 ) — (16.0 ) (1.5 ) (25.5 ) At December 31, 2018 11.0 750.1 162.4 972.4 74.2 17.3 76.2 190.0 629.1 27.6 650.8 93.7 3,654.8 Accumulated depreciation At December 31, 2017 — (208.9 ) (104.1 ) (506.6 ) (43.4 ) (13.4 ) (81.3 ) (148.4 ) (329.7 ) (9.9 ) (207.2 ) — (1,652.9 ) Depreciation — (20.2 ) (2.8 ) (46.4 ) (2.9 ) (1.0 ) (9.1 ) (11.5 ) (48.1 ) — (17.2 ) — (159.2 ) Disposals — 10.7 0.9 33.5 1.5 0.4 0.3 6.3 0.7 — 6.9 — 61.2 Reclassifications* — 0.1 0.3 2.8 — — 51.4 (1.7 ) — (1.5 ) — — 51.4 Interest on capitalized assets — (1.5 ) — — — — — — — — — — (1.5 ) Translation adjustments — 0.4 0.1 (1.4 ) 0.2 0.2 — 0.8 5.6 — 5.0 — 10.9 At December 31, 2018 — (219.4 ) (105.6 ) (518.1 ) (44.6 ) (13.8 ) (38.7 ) (154.5 ) (371.5 ) (11.4 ) (212.5 ) — (1,690.1 ) Net At December 31, 2017 11.0 532.9 57.3 465.2 31.5 4.1 111.9 41.9 291.2 16.1 465.3 76.5 2,104.9 At December 31, 2018 11.0 530.7 56.8 454.3 29.6 3.5 37.5 35.5 257.6 16.2 438.3 93.7 1,964.7 12.31.2017 Land Buildings and Installations Machinery Furniture and Vehicles Aircraft Computers Tooling Other Exchange Construction Total Cost At December 31, 2016 11.0 657.1 156.1 909.8 74.1 16.8 316.7 179.3 587.8 29.4 669.7 116.4 3,724.2 Additions — 4.1 — 40.3 3.6 0.4 14.4 11.4 30.8 8.6 43.6 80.5 237.7 Disposals — (8.1 ) — (10.1 ) (1.9 ) (0.7 ) (8.1 ) (0.8 ) (1.0 ) — (33.5 ) (1.1 ) (65.3 ) Impairment(ii) — — — (2.2 ) — — (25.8 ) — (2.1 ) — — — (30.1 ) Reclassifications* — 85.5 4.8 22.5 (1.4 ) 0.5 (104.0 ) (0.7 ) 5.1 (12.0 ) (22.2 ) (142.0 ) (163.9 ) Interest on capitalized assets — — — — — — — — — — — 22.1 22.1 Translation adjustments — 3.2 0.5 11.5 0.5 0.5 — 1.1 0.3 — 14.9 0.6 33.1 At December 31, 2017 11.0 741.8 161.4 971.8 74.9 17.5 193.2 190.3 620.9 26.0 672.5 76.5 3,757.8 Accumulated depreciation At December 31, 2016 — (191.3 ) (101.4 ) (445.1 ) (40.0 ) (12.7 ) (153.9 ) (136.2 ) (278.9 ) (9.4 ) (201.1 ) — (1,570.0 ) Depreciation — (21.3 ) (3.0 ) (60.3 ) (4.0 ) (1.2 ) (25.6 ) (12.1 ) (50.8 ) (0.2 ) (18.0 ) — (196.5 ) Disposals — 4.1 — 7.5 1.0 0.6 6.9 0.6 0.3 — 8.8 — 29.8 Reclassifications* — 0.6 0.4 — — 0.3 91.3 — — (0.3 ) — — 92.3 Translation adjustments — (1.0 ) (0.1 ) (8.7 ) (0.4 ) (0.4 ) — (0.7 ) (0.3 ) — 3.1 — (8.5 ) At December 31, 2017 — (208.9 ) (104.1 ) (506.6 ) (43.4 ) (13.4 ) (81.3 ) (148.4 ) (329.7 ) (9.9 ) (207.2 ) — (1,652.9 ) Net At December 31, 2016 11.0 465.8 54.7 464.7 34.1 4.1 162.8 43.1 308.9 20.0 468.6 116.4 2,154.2 At December 31, 2017 11.0 532.9 57.3 465.2 31.5 4.1 111.9 41.9 291.2 16.1 465.3 76.5 2,104.9 12.31.2016 Land Buildings and Installations Machinery Furniture and Vehicles Aircraft Computers Tooling Other Exchange Construction Total Cost At December 31, 2015 11.0 616.5 151.8 853.3 70.5 17.0 323.5 163.2 533.5 22.8 622.6 75.8 3,461.5 Additions — 0.6 — 54.8 4.0 0.7 137.4 17.3 54.6 8.6 65.5 91.7 435.2 Disposals — (9.3 ) (0.2 ) (7.6 ) (2.3 ) (0.9 ) (17.8 ) (3.0 ) (0.9 ) — (15.1 ) (7.1 ) (64.2 ) Impairment — — — — — — (27.0 ) — — — — — (27.0 ) Impairment (iii) — — — — — — (64.9 ) — — — — — (64.9 ) Reclassifications* — 49.9 4.4 10.2 1.9 0.2 (34.7 ) 1.7 0.9 (2.0 ) 1.2 (59.8 ) (26.1 ) Interest on capitalized assets — — — — — — — — — — — 16.1 16.1 Translation adjustments — (0.6 ) 0.1 (0.9 ) — (0.2 ) 0.2 0.1 (0.3 ) — (4.5 ) (0.3 ) (6.4 ) At December 31, 2016 11.0 657.1 156.1 909.8 74.1 16.8 316.7 179.3 587.8 29.4 669.7 116.4 3,724.2 Accumulated depreciation At December 31, 2015 — (180.8 ) (97.2 ) (389.5 ) (37.9 ) (12.5 ) (156.4 ) (128.7 ) (233.4 ) (9.4 ) (188.3 ) — (1,434.1 ) Depreciation (20.0 ) (4.2 ) (62.7 ) (4.1 ) (1.1 ) (25.4 ) (10.4 ) (44.7 ) — (21.9 ) (194.5 ) Disposals — 9.2 — 4.9 1.9 0.8 15.5 2.9 0.5 — 6.0 — 41.7 Reclassifications* — — — 1.8 — — 8.6 (0.1 ) (1.6 ) — — — 8.7 Translation adjustments — 0.3 — 0.4 0.1 0.1 3.8 0.1 0.3 — 3.1 — 8.2 At December 31, 2016 — (191.3 ) (101.4 ) (445.1 ) (40.0 ) (12.7 ) (153.9 ) (136.2 ) (278.9 ) (9.4 ) (201.1 ) — (1,570.0 ) Net 11.0 435.7 54.6 463.8 32.6 4.5 167.1 34.5 300.1 13.4 434.3 75.8 2,027.4 At December 31, 2015 11.0 465.8 54.7 464.7 34.1 4.1 162.8 43.1 308.9 20.0 468.6 116.4 2,154.2 * On December 31, 2018, 2017 and 2016, reclassification of “Aircraft” and “Exchange pool program assets” classes refers to aircraft and items transferred to the inventory for sale purposes. In addition, in September 2017, 17 ERJ 145 aircraft were transferred to inventory in order to be disassembled and sold as parts (part-out (i) The aircraft are used for testing, shuttle and operating leases and are adjusted to fair value, if applicable. The following aircraft are held: • December 31, 2018: three ERJ 135, 15 ERJ 145, one EMBRAER 190, one EMBRAER 120, one Legacy 450, one 690B; and • December 31, 2017: nine ERJ 135, 26 ERJ 145, four EMBRAER 170, one EMBRAER 190, one EMBRAER 120, one Legacy 450, one Legacy 500, one Phenom 300, one 690B. (ii) Impairment losses recognized as discussed in Note 17. |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Intangible Assets Internally Developed and Acquired From Third Party | 12.31.2018 Internally developed Acquired from third party Commercial Executive Defense and Other Development Software Goodwill Other Total Intangible cost At December 31, 2017 1,825.2 1,355.7 33.5 5.8 13.9 343.3 12.0 45.6 3,635.0 Additions 209.3 41.3 4.0 0.1 2.5 8.0 — 25.1 290.3 Contributions from suppliers (125.5 ) — — — — — — — (125.5 ) Disposals — — — — — (3.4 ) — — (3.4 ) Reclassifications — — 5.9 (2.4 ) (10.1 ) 2.4 — (1.9 ) (6.1 ) Impairment — (58.5 ) — — — — — — (58.5 ) Interest on capitalized assets 7.3 2.7 — — — — — — 10.0 Translation adjustments — — — — — — (1.6 ) — (1.6 ) At December 31, 2018 1,916.3 1,341.2 43.4 3.5 6.3 350.3 10.4 68.8 3,740.2 Acumulated amortization At December 31, 2017 (1,031.8 ) (473.7 ) (27.9 ) (1.1 ) (6.8 ) (206.9 ) — (4.4) (1,752.6 ) Amortization (29.6 ) (51.1 ) (1.8 ) (0.1 ) (0.9 ) (28.1 ) — (1.2 ) (112.8 ) Amortization of contribution from suppliers 8.0 14.0 — — — — — — 22.0 Disposals — — — — — 2.2 — — 2.2 Reclassifications — — (2.7 ) — 4.8 — — (0.7 ) 1.4 Interest on capitalized assets (0.2 ) (1.4 ) — — — — — — (1.6 ) At December 31, 2018 (1,053.6 ) (512.2 ) (32.4 ) (1.2 ) (2.9 ) (232.8 ) — (6.3) (1,841.4 ) Intangible, net At December 31, 2017 793.4 882.0 5.6 4.7 7.1 136.4 12.0 41.2 1,882.4 At December 31, 2018 862.7 829.0 11.0 2.3 3.4 117.5 10.4 62.5 1,898.8 12.31.2017 Internally developed Acquired from third party Commercial Executive Defense and Other Development Software Goodwill Other Total Intangible cost At December 31, 2016 1,515.1 1,320.3 30.8 51.8 13.5 311.4 21.0 32.8 3,296.7 Additions 313.8 76.9 3.0 2.5 1.9 56.3 — 16.1 470.5 Contributions from suppliers (86.0 ) — — — — — — — (86.0 ) Disposals — — — — (1.5 ) — — — (1.5 ) Reclassifications 71.3 3.6 (0.3 ) (48.5 ) — (24.4 ) — (1.7 ) — Impairment — (49.9 ) — — — — (8.7 ) (1.9 ) (60.5 ) Interest on capitalized assets 11.0 4.8 — — — — — — 15.8 Translation adjustments — — — — — — (0.3 ) 0.3 — At December 31, 2017 1,825.2 1,355.7 33.5 5.8 13.9 343.3 12.0 45.6 3,635.0 Acumulated amortization At December 31, 2016 (992.4 ) (424.9 ) (25.6 ) — (5.7 ) (179.8 ) — (3.7) (1,632.1 ) Amortization (57.4 ) (56.7 ) (2.6 ) (0.1 ) (1.1 ) (27.1 ) — (1.2 ) (146.2 ) Amortization of contribution from suppliers 13.5 13.8 — — — — — — 27.3 Reclassifications 4.5 (4.3 ) 0.3 (1.0 ) — — — 0.5 — Interest on capitalized assets — (1.6 ) — — — — — — (1.6 ) At December 31, 2017 (1,031.8 ) (473.7 ) (27.9 ) (1.1 ) (6.8 ) (206.9 ) — (4.4) (1,752.6 ) Intangible, net At December 31, 2016 522.7 895.4 5.2 51.8 7.8 131.6 21.0 29.1 1,664.6 At December 31, 2017 793.4 882.0 5.6 4.7 7.1 136.4 12.0 41.2 1,882.4 12.31.2016 Internally developed Acquired from third party Commercial Executive Defense and Other Development Software Goodwill Other Total Intangible cost At December 31, 2015 1,276.1 1,248.9 25.6 36.1 10.1 263.3 16.4 24.0 2,900.5 Additions 351.1 65.4 5.2 15.7 10.7 48.1 — 8.8 505.0 Contributions from suppliers (123.9 ) — — — — — — — (123.9 ) Reclassifications — — — — (7.3 ) — — — (7.3 ) Interest on capitalized assets 11.8 6.0 — — — — — — 17.8 Translation adjustments — — — — — — 4.6 — 4.6 At December 31, 2016 1,515.1 1,320.3 30.8 51.8 13.5 311.4 21.0 32.8 3,296.7 Acumulated amortization At December 31, 2015 (923.6 ) (377.1 ) (25.6 ) — (4.6 ) (160.9 ) — (3.3) (1,495.1 ) Amortization (92.0 ) (61.5 ) — — (1.1 ) (18.9 ) — (0.4 ) (173.9 ) Amortization of contribution from suppliers 23.2 15.1 — — — — — — 38.3 Interest on capitalized assets — (1.4 ) — — — — — — (1.4 ) At December 31, 2016 (992.4 ) (424.9 ) (25.6 ) — (5.7 ) (179.8 ) — (3.7) (1,632.1 ) Intangible, net At December 31, 2015 352.5 871.8 — 36.1 5.5 102.4 16.4 20.7 1,405.4 At December 31, 2016 522.7 895.4 5.2 51.8 7.8 131.6 21.0 29.1 1,664.6 |
Trade accounts payable (Tables)
Trade accounts payable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Trade Accounts Payable | 12.31.2018 12.31.2017 Foreign suppliers 574.0 545.4 Risk partners (i) 200.2 162.0 Domestic suppliers 117.9 117.3 892.1 824.7 (i) The Company’s risk-sharing suppliers/partners develop and produce significant aircraft components, including engines, hydraulic components, avionics, wings, tail sections, interior components and fuselage parts. Certain contracts between the Company and these risk-sharing suppliers/partners are long-term and include deferral of payments for components and systems for a negotiated term after delivery. Once the risk-sharing suppliers/partners have been selected and the aircraft development and production program has commenced, changing suppliers is more challenging. For example, in the case of engines, the aircraft is specially designed to accommodate a given component, which cannot be easily replaced by another supplier without incurring delays and significant additional expense. This dependence makes the Company vulnerable to the performance, quality and financial position of its risk-sharing suppliers/partners. |
Loans and financing (Tables)
Loans and financing (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Loans and Financing | Currency Contractual interest rate - % Effective interest rate - % Maturity 12.31.2018 12.31.2017 Other currencies: 5.05% to 6.38% 5.05% to 7.42% 2027 (i) 2,941.8 2,934.1 0.63% to 5.37% 0.63% to 5.37% 2021 124.1 220.6 Working capital US$ Libor 6M + 1.35% to 2.60% Libor 6M + 1.35% to 2.60% 2027 219.8 119.1 Libor 3M + 2.25% Libor 3M + 2.25% 2026 — 220.20 Euro 1.00% to 3.37% 1.00% to 3.37% 2026 19.6 14.0 Advances on foreign exchange contracts US$ 4.65% 4.65% 2018 — 3.1 1.04% to 1.10% 1.04% to 1.10% 2035 Property, plant and equipment US$ Libor 1M + 2.44% to 2.50% Libor 1M + 2.44% to 2.50% 2037 55.8 58.1 3,361.1 3,569.2 In local currency: 3.50% to 4.50% 3.50% to 4.50% 2023 Project development R$ TJLP + 1.92% to 5.00% TJLP + 1.92% to 5.00% 2022 248.0 396.0 Export Credit Note R$ 10.85% a 11.00% 10.85% a 11.00% 2019 38.5 233.1 286.5 629.1 Total 3,647.6 4,198.3 Current portion 179.3 388.9 Non-current 3,468.4 3,809.6 (i) Bonus Issue Guaranteed - Bonds |
Summary of Maturities of Long term Financing Agreements | As of December 31, 2018, the movement and maturities of the long-term financing agreements are as follows: 12.31.2018 12.31.2017 12.31.2016 Opening balance 3,584.4 3,704.4 4,229.9 Principal addition 124.0 940.0 620.5 Interest addition 218.0 192.7 195.7 Principal payment (596.3 ) (521.3 ) (559.7 ) Interest payment (212.7 ) (186.4 ) (175.0 ) Foreing exchange 530.2 68.9 (551.5 ) Total 3,647.6 4,198.3 3,759.9 As of December 31, 2018, the maturity schedules of the long-term financing are: Year 2020 237.0 2021 287.5 2022 519.5 2023 520.8 After 2023 1,903.6 3,468.4 |
Other payables (Tables)
Other payables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Schedule of Other Payables | 12.31.2018 12.31.2017 Other accounts payable (i) 114.6 112.0 Provisions related to payroll (ii) 92.8 108.6 Provision for employee profit sharing 34.3 29.8 Mutual with jointly controlled operation 23.2 19.7 Contractual obligations (iii) 17.5 16.9 Long-term incentive (iv) 16.9 9.9 Commission payable 10.9 10.6 Insurance 6.2 5.0 Brazilian air force 0.6 1.2 317.0 313.7 Current portion 288.4 292.2 Non-current 28.6 21.5 (i) Represents a provision for expenses already incurred as of the date of the balance sheet and for which payments are made during the following month. (ii) Refers to employee related obligations recorded in the financial statements; (iii) Substantially represents amounts recorded regarding maintenance costs of aircraft leased through operating leases and contractually agreed upon commitments for the sale of new aircraft or the expiration of residual financial guarantees; (iv) Refers to the Long-Term Incentive (ILP) granted to Company employees in the form of phantom shares, as described in Note 28—Share-based Remuneration. |
Taxes and payroll charges pay_2
Taxes and payroll charges payable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Schedule of Taxes and Payroll Charges Payable | 12.31.2018 12.31.2017 INSS (social security contribution) (i) 105.2 84.0 IRRF (withholding tax) 11.8 24.2 PIS and COFINS (ii) 1.6 4.2 Taxes refinancing program 1.1 15.0 IPI (manufacturing tax) 0.3 1.1 FGTS (government employee severance indemnity fund) 0.2 5.6 Others 6.4 6.8 126.6 140.9 Current portion 68.4 70.7 Non-current 58.2 70.2 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Components of Deferred Tax Assets and Liabilities | The components of deferred tax assets and liabilities are as follows: 12.31.2018 12.31.2017 01.01.2017 (Restated) (Restated) Temporarily non-deductible 39.7 (76.1 ) (102.7 ) Tax loss carryforwards 0.5 4.5 28.3 Functional currency effect of the non monetary assets (323.4 ) (206.0 ) (201.0 ) Gains not realized from sales of the Company to subsidiairies 22.7 15.4 16.4 Effect of differences by fixed asset 7.5 (8.1 ) (31.2 ) Differences between basis: account x tax 20.6 25.7 36.6 Deferred tax assets (liabilities), net (232.4 ) (244.6 ) (253.6 ) Total deferred tax asset 21.6 13.4 11.6 Total deferred tax liability (254.0 ) (258.0 ) (265.2 ) |
Changes in Deferred Income Tax | Changes in deferred income tax that affected profit and loss were as follows: From the Other Total At January 01, 2016 (Restated) (429.9 ) 32.5 (397.4 ) Temporarily non-deductible (99.9 ) — (99.9 ) Tax loss carryforwards 7.8 — 7.8 Functional currency effect of the non monetary assets 206.1 — 206.1 Provision Gain not realized at sales from Controlling company to subsidiairies (3.5 ) — (3.5 ) Effect of differences by fixed asset 4.9 — 4.9 Differences between basis: account x tax 22.1 6.3 28.4 At December 31, 2016 (Restated) (292.4 ) 38.8 (253.6 ) Temporarily non-deductible 26.6 — 26.6 Tax loss carryforwards (23.8 ) — (23.8 ) Functional currency effect of the non monetary assets (5.0 ) — (5.0 ) Provision Gain not realized at sales from Controlling company to subsidiairies (1.0 ) — (1.0 ) Effect of differences by fixed asset 23.0 — 23.0 Differences between basis: account x tax (6.9 ) (3.9 ) (10.8 ) At December 31, 2017 (Restated) (279.5 ) 34.9 (244.6 ) Temporarily non-deductible 115.8 — 115.8 Tax loss carryforwards (4.0 ) — (4.0 ) Functional currency effect of the non monetary assets (117.4 ) — (117.4 ) Gains not realized from sales of Parent Company to subsidiairies 7.3 — 7.3 Effect of differences by fixed asset 15.6 — 15.6 Differences between basis: account x tax 3.9 (9.0 ) (5.1 ) At December 31, 2018 (258.3 ) 25.9 (232.4 ) |
Reconciliation of Income Tax Expense | 22.2 Reconciliation of income tax expense 12.31.2018 12.31.2017 12.31.2016 (Restated) (Restated) Profit (loss) before taxation (136.2 ) 307.9 180.6 Income tax and social contribution expense at the nominal Brazilian enacted tax rate—34% 46.3 (104.7 ) (61.4 ) Tax on profits of overseas subsidiaries (33.2 ) (9.8 ) (4.0 ) Functional currency effect of the non monetary assets (117.4 ) (5.0 ) 206.1 Research and development tax incentives 27.7 43.8 36.5 Interest on own capital 3.0 16.9 6.1 Fiscal credits (recognized and non recognized) (26.0 ) 19.3 (30.4 ) Tax rate diference 30.9 5.3 (0.7 ) Other difference between IFRS and fiscal basis 41.4 3.3 (90.9 ) Other (7.7 ) 3.0 (61.6 ) (81.3 ) 76.8 61.1 Income tax and social contribution income (expense) benefit as reported (35.0 ) (27.9 ) (0.3 ) Current income tax and social contribution (expense) benefit as reported (56.2 ) (40.8 ) (137.8 ) Deferred income tax and social contribution income (expense) benefit as reported 21.2 12.9 137.5 |
Financial Guarantees and Resi_2
Financial Guarantees and Residual Value Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Schedule of Financial Guarantees and Residual Guarantees | 12.31.2018 12.31.2017 Financial guarantee of residual value 125.4 108.9 Accounts payable (i) 15.1 30.8 Financial guarantee 11.6 17.1 152.1 156.8 Current portion 51.0 22.2 Non-current 101.1 134.6 |
Activity on Financial Guarantees and Residual Guarantees | The movement on the financial guarantees and residual guarantees is shown below: Financial Financial Accounts Additional Total At January 01, 2016 40.1 94.7 57.4 100.9 293.1 Additions 0.1 — 11.9 — 12.0 Interest Additions — — 1.7 — 1.7 Disposals (6.6 ) — (95.6 ) — (102.2 ) Reversals — — — (10.4 ) (10.4 ) Reclassifications — — 90.5 (90.5 ) — Market value — 27.5 — — 27.5 Guarantee amortization (10.9 ) — — — (10.9 ) At December 31, 2016 22.7 122.2 65.9 — 210.8 Additions 1,2 — 3.7 — 4.9 Interest Additions — — 2.0 — 2.0 Disposals — — (40.8 ) — (40.8 ) Market value — (13.3 ) — — (13.3 ) Guarantee amortization (6.8 ) — — — (6.8 ) At December 31, 2017 17.1 108.9 30.8 — 156.8 Interest Additions — — 1.5 — 1.5 Disposals — — (17.2 ) — (17.2 ) Market value — 16.5 — — 16.5 Guarantee amortization (5.5 ) — — — (5.5 ) At December 31, 2018 11.6 125.4 15.1 — 152.1 (i) Accounts payable and additional provision: • Republic Airways Holdings—Refer to liabilities assumed as part of financial guarantees granted to the customer as a result of his filing for bankruptcy (Chapter 11) on February, 2016, which is partially concluded as of December 31, 2018. |
Provisions and contingent lia_2
Provisions and contingent liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Provision | 24.1 Provisions 12.31.2018 12.31.2017 01.01.2017 (Restated) (Restated) Product warranties (i) 98.0 101.1 94.1 Provisions for labor, taxes and civil (ii) 58.4 54.2 93.1 Taxes 31.4 41.8 28.5 Post retirement benefits 31.7 36.1 46.0 Environmental provision 2.4 1.8 1.0 Voluntary redundancy scheme — — 25.3 Other 20.5 25.3 14.8 242.4 260.3 302.8 Current portion 116.9 124.1 123.8 Non-current 125.5 136.2 179.0 (i) Recorded to cover product-related expenditure, including warranties and contractual obligations to implement improvements to aircraft delivered in order to meet performance targets. (ii) Provisions for labor, tax or civil contingencies, as shown in the table below Note 24.1.1. |
Summary of Change in Provision | Change in provision: Product Provisions Post retirement Taxes Voluntary Environment Other Total At January 01, 2016 (Restated) 95.7 49.9 26.8 16.9 — 1.7 7.7 198.7 Additions 51.9 43.3 11.2 12.0 118.0 1.0 17.0 254.4 Interest — 4.3 3.3 — — — — 7.6 Used/payments (31.7 ) (2.7 ) — — (77.0 ) — (8.1 ) (119.5 ) Reversals (20.6 ) (5.5 ) — — (15.0 ) (2.0 ) — (43.1 ) Translation adjustments (1.2 ) 3.8 4.7 (0.4 ) (0.7 ) 0.3 (1.8 ) 4.7 At December 31, 2016 (Restated) 94.1 93.10 46.0 28.5 25.3 1.0 14.8 302.8 Additions 42.5 12.7 3.2 14.0 7.0 3.0 7.1 89.5 Interest — 12.5 4.4 — — — — 16.9 Used/payments (26.8 ) (61.1 ) (15.3 ) — (31.0 ) — — (134.2 ) Reversals (8.8 ) (2.3 ) (1.4 ) — (1.0 ) (2.0 ) — (15.5 ) Translation adjustments 0.1 (0.7 ) (0.8 ) (0.7 ) (0.3 ) (0.2 ) 3.4 0.8 At December 31, 2017 (Restated) 101.1 54.2 36.1 41.8 — 1.8 25.3 260.3 Additions 38.1 24.6 0.6 0.8 — 2.0 8.0 74.1 Interest — 5.1 2.9 — — — — 8.0 Used/payments (24.9 ) (6.4 ) (3.3 ) (11.2 ) — — — (45.8 ) Reversals (16.2 ) (11.8 ) (0.2 ) — — (1.0 ) — (29.2 ) Translation adjustments (0.1 ) (7.3 ) (4.4 ) — — (0.4 ) (12.8 ) (25.0 ) At December 31, 2018 98.0 58.4 31.7 31.4 — 2.4 20.5 242.4 |
Summary of Labor, Tax and Civil Provisions | 24.1.1 Labor, tax and civil provisions 12.31.2018 12.31.2017 Tax related IRPJ (i) 9.2 10.1 PIS and COFINS 5.3 6.8 Social security contributions (ii) 2.4 2.8 Import taxes (iii) 0.8 0.9 FUNDAF 0.1 — Others 0.2 0.4 18.0 21.0 Labor related Plurimas 461/1379 (iv) 10.0 11.3 Reintegration (v) 7.0 5.1 Overtime (vi) 6.0 1.7 Dangerousness (vii) 1.0 0.1 Indemnity (viii) 3.1 2.3 Third parties 0.5 0.9 Others 12.4 11.6 40.0 33.0 Civil related Indemnity (ix) 0.4 0.2 0.4 0.2 58.4 54.2 Current portion 20.7 21.5 Non-current 37.7 32.7 (i) The Company has obtained injunction to suspend collection of withholding tax related to values transferred overseas. (ii) The Company was notified by the authorities for failing to withhold social security contributions from service providers. These lawsuits are at the second court level. (iii) Deficiency and Penalty Notices issued against the Company involving the drawback regime, disputing possible differences in relation to the tax classification of certain products and is at the analysis stage in the Federal Supreme Court—STJ ( Supremo Tribunal de Justiça (iv) Refers to claims for backdated salary increases and productivity payments, brought by former employees. (v) Suits brought by former employees claiming reinstatement with the Company for various reasons. (vi) Refer to requirements for payment of alleged differences in relation to overtime. (vii) Are requirements that seek the recognition of activity in hazardous condition. (viii) Indemnity claims in connection with alleged work-related accidents, pain and suffering, etc. (ix) Other indemnity claims brought by parties that had some kind of legal relationship with the Company. |
Post-retirement benefits (Table
Post-retirement benefits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Post Retirement Benefits | 12.31.2018 12.31.2017 Medical benefits plan Brazil 27.9 31.8 Medical benefits plan subsidiaries abroad 3.8 4.3 Post-retirement benefits 31.7 36.1 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Financial Instruments by Category | 26.1 Financial instruments by category 12.31.2018 Note Amortised Fair value through Fair value through Total Assets Cash and cash equivalents 5 1,280.9 — — 1,280.9 Financial investments 6 48.8 507.8 1,370.3 1,926.9 Guarantee Deposits 10 349.7 — — 349.7 Collateralized accounts receivable 9 235.9 — — 235.9 Contract assets 358.0 — — 358.0 Trade accounts receivable, net 7 318.0 — — 318.0 Customer and commercial financing 11.7 — — 11.7 Derivative financial instruments 8 — — 9.5 9.5 Other Assets 66.2 — — 66.2 2,669.2 507.8 1,379.8 4,556.8 Liabilities Loans and financing 19 3,647.7 — — 3,647.7 Trade accounts payable and others liabilities 1,550.5 — — 1,550.5 Financial guarantee and of residual value 23 15.0 — 125.4 140.4 Derivative financial instruments 8 — — 8.1 8.1 5,213.2 — 133.5 5,346.7 12.31.2017 (Restated) Note Amortised Fair value through Fair value through Total Assets Cash and cash equivalents 5 1,270.8 — — 1,270.8 Financial investments 6 50.5 1,307.6 1,259.2 2,617.3 Guarantee Deposits 10 393.9 — — 393.9 Collateralized accounts receivable 9 288.7 — — 288.7 Contract assets 447.5 — — 447.5 Trade accounts receivable, net 7 297.0 — — 297.0 Customer and commercial financing 16.4 — — 16.4 Derivative financial instruments 8 — — 34.3 34.3 Other Assets 82.2 — — 82.2 2,847.0 1,307.6 1,293.5 5,448.1 Liabilities Loans and financing 19 4,198.5 — — 4,198.5 Trade accounts payable and others liabilities 1,502.5 — — 1,502.5 Financial guarantee and residual value 23 30.7 — 108.9 139.6 Derivative financial instruments 8 — — 8.9 8.9 5,731.7 — 117.8 5,849.5 |
Summary of Fair Value of Liabilities Measurement Using Significant Unobservable Inputs | The following table lists the Company’s financial assets and liabilities by level within the fair value hierarchy. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. In 2018 there was no change in the methods used to assess the fair value of financial instruments, as well as there were no changes or transfers of instruments level. 12.31.2018 Note Level 2 Level 3 Total Fair value of the other Fair value Book value Assets Cash and cash equivalents 5 — — — 1,280.9 1,280.9 1,280.9 Financial investments 6 1,818.2 59.9 1,878.1 48.8 1,926.1 1,926.9 Guarantee Deposits 10 — — — 349.7 349.7 349.7 Collateralized accounts receivable — — — 235.9 235.9 235.9 Contract assets — — — 358.0 358.0 358.0 Trade accounts receivable, net 7 — — — 318.0 318.0 318.0 Customer and commercial financing — — — 11.7 11.7 11.7 Derivative financial instruments 8 9.5 — 9.5 — 9.5 9.5 Other Assets — — — 66.2 66.2 66.2 1,827.7 59.9 1,887.6 2,669.2 4,556.0 4,556.8 Liabilities Loans and financing — — — 3,647.7 3,756.8 3,647.7 Trade accounts payable and others liabilities 19 — — — 1,550.5 1,550.5 1,550.5 Financial guarantee and of residual value — 125.4 125.4 15.0 140.4 140.4 Derivative financial instruments 19 8.1 — 8.1 — 8.1 8.1 8.1 125.4 133.5 5,213.2 5,455.8 5,346.7 12.31.2017 (Restated) Note Level 2 Level 3 Total Fair value of the other Fair value Book value Assets Cash and cash equivalents 5 — — — 1,270.8 1,270.8 1,270.8 Financial investments 6 2,507.2 59.6 2,566.8 50.4 2,617.3 2,617.3 Guarantee Deposits 10 — — — 393.9 393.9 393.9 Collateralized accounts receivable — — — 288.7 288.7 288.7 Contract assets — — — 447.5 447.5 447.5 Trade accounts receivable, net 7 — — — 297.0 297.0 297.0 Customer and commercial financing — — — 16.4 16.4 16.4 Derivative financial instruments 8 34.3 — 34.3 — 34.3 34.3 Other Assets — — — 82.2 82.2 82.2 2,541.5 59.6 2,601.1 2,846.9 5,448.1 5,448.1 Liabilities Loans and financing 19 — — — 4,198.5 4,408.6 4,198.5 Trade accounts payable and others liabilities — — — 1,502.5 1,502.5 1,502.5 Financial guarantee and of residual value 23 — 108.9 108.9 30.7 139.6 139.6 Derivative financial instruments 8 8.9 — 8.9 — 8.9 8.9 8.9 108.9 117.8 5,731.7 6,059.6 5,849.5 |
Summary of Company's Financial Assets and Liabilities | Fair value of financial Assets Liabilities At 12.31.2016 (Restated) 35.0 122.2 Adding Shares 58.8 — Disposal Claim (34.8 ) — Market value 0.6 (13.3 ) At 12.31.2017 (Restated) 59.6 108.9 Market value 0.3 16.5 At 12.31.2018 59.9 125.4 |
Summary of Additional Information Related to Authorization of Undiscounted Contractual Obligations and Commercial Commitments | The following table provides additional information related to undiscounted contractual obligations and commercial commitments and their respective maturities: Cash Flow Less than one One to three Three to five More than At December 31, 2018 Loans and financing 4,701.3 321.0 867.3 1,345.7 2,167.3 Trade accounts payable 892.1 892.1 — — — Recourse and non recourse debt 341.4 324.0 7.6 6.6 3.2 Financial guarantees 152.1 51.0 39.9 31.3 29.9 Other liabilities 227.3 5.4 92.2 95.3 34.4 Total 6,314.2 1,593.5 1,007.0 1,478.9 2,234.8 At December 31, 2017 (Restated) Loans and financing 5,400.7 491.6 784.9 1,220.2 2,904.0 Trade accounts payable 824.7 824.7 — — — Recourse and non recourse debt 364.1 17.6 332.7 8.0 5.8 Financial guarantees 156.8 22.2 52.5 31.1 51.0 Other liabilities 249.4 11.4 46.1 92.3 99.6 Total 6,995.7 1,367.5 1,216.2 1,351.6 3,060.4 |
Summary of Company's Cash, Cash Equivalents, Financial Investments and Loans and Financing | At December 31, 2018, the Company’s cash, cash equivalents, financial investments and loans and financing were indexed as follows: Without derivative effect Pre-fixed Post-fixed Total Amount % Amount % Amount % Cash, cash equivalents and financial investments 2,742.3 85.49 % 465.5 14.51 % 3,207.8 100.00 % Loans and financing 3,577.7 98.09 % 69.8 1.91 % 3,647.5 100.00 % With derivative effect Pre-fixed Post-fixed Total Amount % Amount % Amount % Cash, cash equivalents and financial investments 2,742.3 85.49 % 465.5 14.51 % 3,207.8 100.00 % Loans and financing 3,194.3 87.57 % 453.3 12.43 % 3,647.6 100.00 % |
Summary of Company's Cash Equivalents and Post Fixed Financing | At December 31, 2018, the Company’s cash equivalents and post -fixed financing were indexed as follows: Without derivative effect With derivative effect Amount % Amount % Cash equivalents and financial investments 465.4 100.00 % 465.5 100.00 % CDI 403.1 86.61 % 403.2 86.62 % Libor 62.3 13.39 % 62.3 13.38 % Loans and financing 69.9 100.00 % 453.4 100.00 % TJLP 1.9 2.72 % 1.9 0.42 % Libor 68.0 97.28 % 65.4 14.42 % CDI — 0.00 % 386.1 85.16 % |
Summary of Changes In Foreign Exchange Rates | At December 31, 2018, the Company had the following amounts of financial assets and liabilities denominated in several currencies: 12.31.2018 12.31.2017 12.31.2016 (Restated) (Restated) Loans and financing Brazilian reais 286.5 629.0 832.9 U.S. dollars 3,341.6 3,555.5 2,910.7 Euro 19.6 14.0 16.3 3,647.7 4,198.5 3,759.9 Trade accounts payable Brazilian reais 77.1 87.6 91.9 U.S. dollars 715.6 621.0 783.2 Euro 27.2 115.0 75.3 Other currencies 72.2 1.1 1.7 892.1 824.7 952.1 Total (1) 4,539.8 5,023.2 4,712.0 Cash and cash equivalents and financial investments Brazilian reais 406.5 750.2 1,180.0 U.S. dollars 2,746.9 2,979.2 1,838.3 Euro 47.7 97.5 127.1 Other currencies 6.8 61.2 44.8 3,207.9 3,888.1 3,190.2 Trade accounts receivable: Brazilian reais 10.7 30.8 143.4 U.S. dollars 274.2 154.1 187.7 Euro 33.1 106.1 5.6 Other currencies — 6.0 0.1 318.0 297.0 336.8 Total (2) 3,525.9 4,185.1 3,527.0 Net exposure (1 - 2): Brazilian reais (53.6 ) (64.4 ) (398.6 ) U.S. dollars 1,036.1 1,043.2 1,667.9 Euro (34.0 ) (74.6 ) (41.1 ) Other currencies 65.4 (66.1 ) (43.2 ) |
Summary of Interest Risk Factor | 26.4.2 Interest risk factor Additional variations in book balances (*) Risk factor Amounts -50% -25% Probable +25% +50% Cash equivalents and financial investments CDI 403.1 (12.6 ) (6.0 ) 0.6 7.2 13.8 Net impact CDI 403.1 (12.6 ) (6.0 ) 0.6 7.2 13.8 Cash equivalents and financial investments LIBOR 62.3 (0.9 ) (0.5 ) — 0.4 0.9 Loans and financing LIBOR (68.0 ) 1.0 0.5 — (0.5 ) (1.0 ) Net impact LIBOR (5.7 ) 0.1 — — (0.1 ) (0.1 ) Loans and financing TJLP (1.9 ) 0.1 — — — (0.1 ) Net impact TJLP (1.9 ) 0.1 — — — (0.1 ) Rates considered CDI 6.40 % 3.28 % 4.91 % 6.55 % 8.19 % 9.83 % Rates considered LIBOR 2.87 % 1.43 % 2.14 % 2.86 % 3.57 % 4.29 % Rates considered TJLP 6.56 % 3.49 % 5.24 % 6.98 % 8.73 % 10.47 % (*) The positive and negative variations of 25% and 50% were applied on the rates |
Summary of Foreign Exchange Risk Factor | 26.4.3 Foreign exchange risk factor Additional variations in book balances (*) Risk factor Amounts -50% -25% Probable +25% +50% Assets 745.3 378.9 195.7 12.4 (170.8 ) (354.0 ) Cash, cash equivalents and financial investments R$ 528.4 268.6 138.7 8.8 (121.1 ) (251.0 ) Other assets R$ 216.9 110.3 57.0 3.6 (49.7 ) (103.0 ) Liabilities (79.7 ) (40.6 ) (20.9 ) (1.3 ) 18.2 37.9 Loans and financing R$ (286.5 ) (145.7 ) (75.2 ) (4.8 ) 65.6 136.1 Other liabilities R$ 206.8 105.1 54.3 3.5 (47.4 ) (98.2 ) Net impact 825.0 338.3 174.8 11.1 (152.6 ) (316.1 ) Exchange rate considered 3.8748 1.9050 2.8575 3.8100 4.7625 5.7150 (*) The positive and negative variations of 25% and 50% were applied on the rates |
Summary of Derivative Contracts | 26.4.4 Derivative contracts Additional variations in book balances (*) Risk factor Amounts -50% -25% Probable +25% +50% Derivative Designated as Hedge Accounting Interest swap—fair value hedge CDI 6.5 4.1 1.8 (0.5 ) (2.4 ) (4.3 ) Hedge destinated as cash flow US$/R$ (7.4 ) 13.5 9.9 7.3 4.7 1.3 Hedge desifnated as cash flow LIBOR 2.3 — — — — — Other derivatives Interest swap LIBOR 0.2 — — — — 0.1 Foreign Exchange option EUR/US$ — (0.6 ) (0.2 ) — 0.2 0.3 Total 1.6 17.0 11.5 6.8 2.5 (2.6 ) Rate considered LIBOR 2.87 % 1.43 % 2.14 % 2.86 % 3.57 % 4.29 % Rate considered CDI 6.40 % 3.28 % 4.91 % 6.55 % 8.19 % 9.83 % Rate considered US$/R$ 3.8748 1.9050 2.8575 3.8100 4.7625 5.7150 Rate considered LIBOR 1.1467 0.5750 0.8625 1.1500 1.4375 1.7250 (*) The positive and negative variations of 25% and 50% were applied on the rates |
Summary of Residual Value Guarantees | Additional variations in book balances Amounts -50% -25% Probable +25% +50% Financial guarantee of residual value 125.4 (104.5 ) (90.0 ) (1.0 ) 94.8 106.0 Total 125.4 (104.5 ) (90.0 ) (1.0 ) 94.8 106.0 |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Schedule of Treasury Shares | USD Quantity Share value Net income of At the beggining of the year 51.8 7,423,705 7.0 — Used for stock options plan(i) (20.4 ) (2,446,007 ) 8.3 10.9 At December 31, 2018 31.4 4,977,698 6.3 10.9 (i) The beneficiaries of the shares used in the share-based compensation plan include the Statutory Board of Directors, Executive Directors and certain employees. Refer to Note 28. |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Grants Awarded | The grants awarded are summarized below: in thousands of options Grants Exercised Canceled (i) Outstanding Exercible Grants on January 23, 2012 4,860,000 (3,732,000 ) (1,009,100 ) 118,900 11.5 Grants on March 20, 2013 4,494,000 (2,409,302 ) (1,266,890 ) 817,808 15.7 At December 31, 2018 9,354,000 (6,141,302 ) (2,275,990 ) 936,708 27.2 (i) The cancellations refer to shares granted to executives or employees who no longer work for the Company. Additionally, on April 16, 2014, there was a cancellation of the grants awarded to members of the Board of Directors, with payment of compensation to plan participants. |
Disclosure of Number and Weighted Average Exercise Prices of Share Options | The fair value of virtual shares is determined based on the average price (weighted by trading volume) of the Company’s shares (EMBR3-R$) Amount of virtual Grant value Amount of virtual Fair value of Grants on February 25, 2014 1,570,698 30.4 175,100 3.7 Grants on March 03, 2015 1,237,090 30.2 546,024 11.5 Grants on March 10, 2016 1,095,720 31.1 541,595 11.4 Grants on June 09, 2016 55,994 1.1 32,674 0.7 Grants on August 25, 2016 70,978 1.1 43,783 0.9 Grants on August 24, 2017 1,930,350 30.5 762,782 16.1 Grants on April 12, 2018 1,625,372 35.2 346,221 7.3 At December 31, 2018 7,586,202 159.6 2,448,179 51.6 (i) Virtual shares until December 31, 2018 considering the plan’s vesting period. |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Basic and Diluted Earnings Per Common Share | Basic earnings per common share is computed by dividing net income for the year by the weighted average number of shares outstanding during the period, excluding shares acquired by the Company and held in Treasury. 12.31.2018 12.31.2017 12.31.2016 (Restated) (Restated) Net income attributable to owners of Embraer (178.2 ) 264.0 178.6 (178.2 ) 264.0 178.6 Weighted average number of shares (in thousands) 734,065 734,264 735,571 Basic earnings per share—U.S. dollars (0.24 ) 0.36 0.24 Diluted earnings per share are calculated by adjusting the weighted average number of common shares outstanding to assume conversion of all potentially dilutive shares. The Company has only one category of potentially dilutive shares, namely share purchase options. A calculation is made in respect of these share purchase options to determine the number of shares that could be acquired at fair value (determined as the average market price of the Company’s share), based on the monetary value of subscription rights tied to the share purchase options in circulation. The number of shares calculated as described above is compared with the number of shares issued, assuming the exercise of share purchase options. 12.31.2018 12.31.2017 12.31.2016 (Restated) (Restated) Net income attributable to owners of Embraer (178.2 ) 264.0 178.6 (178.2 ) 264.0 178.6 Weighted average number of shares (in thousands) 734,065 734,264 735,571 Dilution for the issuance of stock options (in thousands) (i) — 545 1,690 Weighted average number of shares (in thousands)—diluted 734,065 734,809 737,261 Diluted earnings per share—U.S. dollars (0.24 ) 0.36 0.24 (i) Refers to the effect of potentially dilutive shares for December 31, 2018. |
Revenue from contracts with c_2
Revenue from contracts with customers (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Revenue Disaggregation | The revenue amounts by category, including main product and service lines and main geographic areas are presented below, including the reconciliation of revenue’s analytical composition with the reportable segments of the Company: Revenue by category at December 31, 2018: Commercial Defense and Security Executive Service and Other Total Aircraft 2,276.2 92.5 997.4 — 6.9 3,373.0 Aircraft/Development (Defense BU) — 267.0 — — — 267.0 Others 82.1 2.0 107.0 — — 191.1 Service — 183.2 — 622.7 0.1 806.0 Spare Parts — 67.4 — 358.1 8.5 434.0 Total 2,358.3 612.1 1,104.4 980.8 15.5 5,071.1 North Latin Asia Pacific Brazil Europe Other Total Aircraft 2,253.8 87.0 318.2 40.3 644.5 29.2 3,373.0 Aircraft/Development (Defense BU) 1.9 0.1 0.7 243.3 12.6 8.4 267.0 Others 66.6 11.9 5.2 74.7 8.9 23.8 191.1 Service 353.7 42.2 92.3 42.4 230.3 45.1 806.0 Spare Parts 283.0 8.8 15.6 42.3 69.7 14.6 434.0 Total 2,959.0 150.0 432.0 443.0 966.0 121.1 5,071.1 Revenue by category at December 31, 2017 (Restated): Commercial Defense and Executive Service and Other Total Aircraft 2,691.8 — 1,175.0 — 7.1 3,873.9 Aircraft/Development (Defense BU) — 651.8 — — — 651.8 Others 79.6 7.2 105.3 0.3 — 192.4 Service — 177.8 — 622.2 1.0 801.0 Spare Parts — 16.9 — 299.7 23.7 340.3 Total 2,771.4 853.7 1,280.3 922.2 31.8 5,859.4 North Latin America Asia Pacific Brazil Europe Other Total Aircraft 2,711.5 0.2 754.0 20.0 359.3 29.0 3,874.0 Aircraft/Development (Defense BU) 38.0 1.3 9.8 558.4 33.7 10.6 651.8 Others 104.1 0.2 1.7 11.9 0.3 74.1 192.3 Service 304.1 36.9 75.4 109.4 231.5 43.6 800.9 Spare Parts 180.2 13.0 18.6 49.2 66.8 12.6 340.4 Total 3,337.9 51.6 859.5 748.9 691.6 169.9 5,859.4 Revenue by category at December 31, 2016 (Restated): Commercial Defense and Security Executive Jets Service and Other Total Aircraft 2,868.6 42.2 1,402.9 — 0.1 4,313.8 Aircraft/Development (Defense BU) — 578.4 — — (0.3 ) 578.1 Others 48.7 (6.2 ) 150.4 1.5 — 194.4 Service (0.3 ) 194.4 — 596.9 1.8 792.8 Spare Parts (0.1 ) 16.7 — 283.8 24.4 324.8 Total 2,916.9 825.5 1,553.3 882.2 26.0 6,203.9 North Latin Asia Pacific Brazil Europe Other Total Aircraft 3,150.6 164.7 664.2 41.2 250.9 42.2 4,313.8 Aircraft/Development (Defense BU) 112.1 (1.3 ) 14.2 445.5 3.8 3.8 578.1 Others 157.3 1.4 17.3 (10.6 ) 12.1 16.8 194.3 Service 318.4 35.4 68.6 132.5 193.4 44.5 792.8 Spare Parts 172.3 10.5 22.9 54.7 58.3 6.2 324.9 Total 3,910.7 210.7 787.2 663.3 518.5 113.5 6,203.9 |
Summary of Contract balances, including contract costs | The contracts are grouped in the categories above as they have are affected similarly by economic factors. b) Contract balances, including contract costs: Note 12.31.2018 12.31.2017 12.31.2016 (Restated) (Restated) Contract assets 358.0 447.5 370.6 Contract costs (Other assets) 9.1 7.6 6.5 Contract liabilities 1,243.6 1,126.6 1,244.8 Customer advances 1,057.4 938.1 911.3 Deferred revenue 186.2 188.5 333.5 Financial guarantee 23 11.6 17.1 22.7 |
Summary of Other Assets Related to Obtain Contracts | The Company had the following amounts in other assets related to costs to obtain contracts: Sales Bank Off Set Costs Total At January 01, 2016 (Restated) — 9.3 — 9.3 Additions 5.9 2.6 0.1 8.6 Disposals (5.9 ) (5.4 ) (0.1 ) (11.4 ) At December 31, 2016 (Restated) — 6.5 — 6.5 Additions (10.2 ) 1.5 5.6 (3.1 ) Disposals 10.2 (0.4 ) (5.6 ) 4.2 At December 31, 2017 (Restated) — 7.6 — 7.6 Additions 1.5 1.4 0.8 3.7 Disposals (0.9 ) (0.5 ) (0.8 ) (2.2 ) At December 31, 2018 0.6 8.4 — 9.0 |
Revenue (expenses) by type (Tab
Revenue (expenses) by type (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Revenue Expenses | The Company opted to present the consolidated statements of income by function. The table below shows the detailed costs and expenses by nature: 12.31.2018 12.31.2017 12.31.2016 (Restated) (Restated) As presented as statements of Income: Revenue 5,071.1 5,859.4 6,203.9 Cost of sales and services (4,303.1 ) (4,764.1 ) (4,982.0 ) Administrative (182.6 ) (179.1 ) (164.3 ) Selling (304.2 ) (315.9 ) (353.4 ) Research (46.1 ) (49.2 ) (47.6 ) Other income (expenses), net (199.4 ) (210.4 ) (442.6 ) Equity in losses on associates (0.4 ) 1,2 (0.3 ) Operating profit before financial income 35.3 341.9 213.7 Revenue (expenses) by nature: Revenue from sales of goods 4,450.5 5,023.6 5,404.7 Revenue from sales of services 676.5 920.6 880.8 Sales deductions and tax on revenue (i) (55.9 ) (84.8 ) (81.6 ) General manufacturing costs (ii) (4,031.1 ) (4,421.4 ) (4,613.6 ) Depreciation (159.2 ) (196.5 ) (194.5 ) Amortization (112.8 ) (146.2 ) (173.9 ) Personnel expenses (245.8 ) (245.4 ) (261.6 ) Selling expenses (42.7 ) (53.8 ) (83.6 ) Provision for penalties — (10.1 ) (228.0 ) Restructuring expenses — (6.4 ) (117.3 ) Miscellaneous (444.2 ) (437.7 ) (317.7 ) Operating profit before financial income 35.3 341.9 213.7 (i) Refers to sales taxes and other deductions. (ii) Refers to costs of materials, direct labor and general manufacturing expenses. |
Other operating income (expen_2
Other operating income (expense), net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Disclosure of Other Operating Income (Expense) | 12.31.2018 12.31.2017 12.31.2016 (Restated) (Restated) Assets devaluation (i) (99.5 ) (109.1 ) (77.3 ) Corporate projects (ii) (83.4 ) (33.0 ) (21.4 ) Taxes on other outputs (27.5 ) (25.1 ) (36.7 ) Expenses system project (19.7 ) (27.7 ) (16.4 ) Provision for contingencies (12.0 ) (8.0 ) (1.3 ) Training and development (8.7 ) (10.0 ) (10.9 ) Flight safety standards (4.4 ) (4.8 ) (4.6 ) Aircraft maintenance and flights costs - fleet (3.3 ) (2.4 ) (3.4 ) Contractual fines (iii) (2.9 ) 6.6 (7.7 ) Extemporaneous credits — 10.8 16.0 Financial guarantee — 9.6 8.5 Restructuring expenses — (6.4 ) (117.3 ) Accounts payable for penalties — (10.1 ) (228.0 ) Other sales 8.8 13.3 11.3 Recovery of expenses 11.7 6.4 7.9 Royalties 15.3 11.9 11.9 Contractual fines revenue (iv) 35.4 2.4 24.2 Others (9.2 ) (34.8 ) 2.6 (199.4 ) (210.4 ) (442.6 ) (i) Impairment losses recognized in the year, including US$ 61.3 of Lineage aircraft model (Note 17), US$ 6.0 of aircraft held in property, plant and equipment (Note 15) and US$ 32.2 of residual value devaluation related to assets attached to structured operations recorded in collateralized accounts receivable (Note 9); (ii) Refers to projects focused on system and process improvements and special projects of the Company; (iii) Refers to contractual fines to be paid to suppliers due to non-compliance (iv) Substantially fines charged to customers for cancellation of sales contracts, mainly in the Segment of Executive Aviation, in accordance with the contract terms. |
Financial income (expense), n_2
Financial income (expense), net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Schedule of Financial Income (Expense), Net | 12.31.2018 12.31.2017 12.31.2016 (Restated) (Restated) Financial income: Interest on cash and cash equivalents and financial investments 93.0 127.5 201.8 Interest on receivables 33.1 37.5 34.3 Residual value guarantee — 9.5 — Taxes over financial revenue (9.0 ) 8.0 (17.0 ) Other 0.1 0.3 2.4 Total financial income 117.2 182.8 221.5 Financial expenses: Financial restructuring costs (0.9 ) (1.5 ) (0.5 ) IOF - (tax on financial transactions) (1.4 ) (3.7 ) (2.9 ) Interest on taxes, social charges and contributions (3.7 ) (2.2 ) (21.0 ) Residual value guarantee (22.3 ) — (26.7 ) Interest on loans and financing (226.3 ) (215.2 ) (182.6 ) Other (18.7 ) (8.6 ) (17.0 ) Total financial expenses (273.3 ) (231.2 ) (250.7 ) Derivative instruments (15.4 ) 7.8 (8.3 ) Financial income (expenses), net (171.5 ) (40.6 ) (37.5 ) |
Foreign exchange gains (losse_2
Foreign exchange gains (losses), net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Schedule of Foreign Exchange Gains (Losses), Net | 12.31.2018 12.31.2017 12.31.2016 (Restated) (Restated) Monetary and foreign exchange variations Assets: Advances to suppliers* — (1.3 ) — Tax credits (30.9 ) (2.2 ) 28.5 Trade accounts receivable and contract assets (24.6 ) (38.8 ) 14.6 Cash and cash equivalents and financial investments (80.8 ) (4.0 ) 204.2 Other (25.6 ) (0.4 ) 47.5 (161.9 ) (46.7 ) 294.8 Liabilities: Loans and financing 82.7 6.0 (153.3 ) Advances from customers* — 25.1 (46.3 ) Provisions 24.3 3.8 (27.6 ) Taxes and charges payable 13.0 1.6 (21.2 ) Accounts payable 17.4 6.8 (18.8 ) Suppliers 2.7 0.1 (11.7 ) Provisions for contingencies 3.3 (1.3 ) (3.2 ) Deferred taxes (1.3 ) (1.4 ) 0.4 Other (0.9 ) — (0.5 ) 141.2 40.7 (282.2 ) Net monetary and foreign exchange variations (20.7 ) (6.0 ) 12.6 Derivative instruments 20.7 12.6 (8.2 ) Foreign exchange gain (loss), net — 6.6 4.4 * See note to 2.2.1(c) for IFRIC 22 adoption discussions. |
Responsibilities and Commitme_2
Responsibilities and Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Operating Leases with Payments Scheduled | The following table shows the payment schedule for the Company’s operating leases at December 31, 2018: Year 2019 5.4 2020 4.5 2021 4.0 2022 3.5 After 2022 14.7 Total 32.1 |
Summary of Other Provisions, Contingent Liabilities and Other Assets | The table below provides quantitative data on the financial guarantees provided by the Company to third parties. The maximum potential payments (off balance sheet exposure) represent the worst-case scenario and do not necessarily reflect the results expected by the Company. Estimated proceeds from performance guarantees and underlying assets represent the anticipated values of assets the Company could liquidate or receive from other parties to offset its payments under guarantees. 12.31.2018 12.31.2017 Maximum financial guarantees 66.6 107.7 Maximum residual value guarantees 253.1 267.4 Mutually exclusive exposure (i) (26.9 ) (29.0 ) Provisions and liabilities recorded (137.0 ) (126.0 ) Off-balance 155.8 220.1 Estimated proceeds from financial guarantees and underlying assets 177.6 266.9 (i) When an underlying asset is covered by mutually exclusive financial and residual value guarantees, the residual value guarantee may only be exercised if the financial guarantee has expired without having been exercised. On the other hand, if the financial guarantee is exercised, the residual value guarantee is automatically terminated. |
Supplemental Cash Flow inform_2
Supplemental Cash Flow information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Payments Made During Period and Transactions Not Affecting Cash and Cash Equivalents | 12.31.2018 12.31.2017 12.31.2016 Payments made during the period: Interest 212.7 186.4 175.0 Income tax and social contribution 23.3 28.6 153.9 Non-cash Property, plant and equipment, transfer to pool parts inventory (29.5 ) (21.6 ) 2.5 Property, plant and equipment, transfer to financial guarantees — — 45.7 Property, plant and equipment, transfer from intangible assets — — 7.5 Property, plant and equipment, transfer for providing for the sale of inventory (112.7 ) (100.8 ) (34.8 ) Impairment of assets (55.2 ) (58.4 ) — Government grants — (4.3 ) (51.5 ) |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Income Data by Operating Segment | Consolidated statements of income data by operating segment – year ended December 31, 2018: Commercial Defense and Executive Service and Other Total Unallocated Total Revenue 2,358.3 612.1 1,104.3 980.8 15.6 5,071.1 — 5,0711 Cost of sales and services (1,976.7 ) (702.3 ) (914.0 ) (689.0 ) (21.1 ) (4,303.1 ) — (4,303.1 ) Gross profit 381.6 (90.2 ) 190.3 291.8 (5.5 ) 768.0 — 768.0 Gross profit % 16.2 % -14.7 % 17.2 % 29.8 % -35.3 % 15.1 % 15.1 % Operating income (expense) (229.1 ) (93.0 ) (235.0 ) (168.7 ) (6.9 ) (732.7 ) — (732.7 ) Operating profit before financial income (expense) 152.5 (183.2 ) (44.7 ) 123.1 (12.4 ) 35.3 — 35.3 Financial income (expense), net (171.5 ) (171.5 ) Foreign exchange gain (loss), net — — Profit before taxes on income (136.2 ) Income tax expense (35.0 ) (35.0 ) Net income (171.2 ) (i) The results of the Defense and Security segment include the negative impact of special non-recurring Consolidated statements of income data by operating segment – year ended December 31, 2017 Restated): Commercial Defense and Executive Service and Other Total Unallocated Total Revenue 2,771.4 853.7 1,280.3 922.2 31.8 5,859.4 — 5,859.4 Cost of sales and services (2,178.1 ) (792.9 ) (1,126.4 ) (640.3 ) (26.4 ) (4,764.1 ) — (4,764.1 ) Gross profit 593.3 60.8 153.9 281.9 5.4 1,095.3 — 1,095.3 Gross profit % 21.4 % 7.1 % 12.0 % 30.6 % 17.0 % 18.7 % 18.7 % Operating income (expense) (230.5 ) (109.5 ) (206.0 ) (177.0 ) (13.9 ) (736.9 ) (16.5 ) (753.4 ) Operating profit before financial income (expense) 362.8 (48.7 ) (52.1 ) 104.9 (8.5 ) 358.4 (16.5 ) 341.9 Financial income (expense), net (40.6 ) (40.6 ) Foreign exchange gain (loss), net 6.6 6.6 Loss before taxes on income 307.9 Income tax expense (27.9 ) (27.9 ) Net income 280.0 Consolidated statements of income data by operating segment – year ended December 31, 2016 (Restated): Commercial Defense and Security Executive Jets Service and Support Other Total Unallocated Total Revenue 2,916.9 825.5 1,553.3 882.2 26.0 6,203.9 — 6,203.9 Cost of sales and services (2,325.3 ) (693.6 ) (1,343.7 ) (601.6 ) (17.8 ) (4,982.0 ) — (4,982.0 ) Gross profit 591.6 131.9 209.6 280.6 8.2 1,221.9 — 1,221.9 Gross profit % 20.3 % 16.0 % 13.5 % 31.8 % 31.5 % 19.7 % 0.0 % 19.7 % Operating income (expense) (210.9 ) (87.6 ) (172.9 ) (188.5 ) (3.0 ) (662.9 ) (345.3 ) (1,008.2 ) Operating profit before financial income (expense) 380.7 44.3 36.7 92.1 5.2 559.0 (345.3 ) 213.7 Financial income (expense), net (37.5 ) (37.5 ) Foreign exchange gain (loss), net 4.4 4.4 Profit before taxes on income 180.6 Income tax expense (0.3 ) (0.3 ) Net income 180.3 |
Summary of Revenue By Geographic Area | Revenue by geographic area – year ended December 31, 2018: Commercial Defense and Executive Service and Other Total North America 1,449.4 145.7 936.7 422.2 5.0 2,959.0 Europe 519.1 122.8 127.4 196.7 — 966.0 Asia Pacific 324.1 1.6 1.6 104.7 — 432.0 Latin America, except Brazil 11.9 68.3 22.5 47.3 — 150.0 Brazil 0.2 258.9 16.1 157.2 10.6 443.0 Other 53.6 14.8 — 52.7 — 121.1 Total 2,358.3 612.1 1,104.3 980.8 15.6 5,071.1 Revenue by geographic area – year ended December 31, 2017 (Restated): Commercial Defense and Executive Service and Other Total North America 1,795.5 93.3 1,006.8 421.0 21.3 3,337.9 Europe 200.1 133.5 161.7 196.3 — 691.6 Asia Pacific 670.3 13.7 94.1 81.4 — 859.5 Latin America, except Brazil 0.5 5.4 0.6 45.1 — 51.6 Brazil 0.9 587.1 17.1 133.3 10.5 748.9 Other 104.1 20.7 — 45.1 — 169.9 Total 2,771.4 853.7 1,280.3 922.2 31.8 5,859.4 Revenue by geographic area – year ended December 31, 2016 (Restated): Commercial Defense and Executive Service and Other Total North America 2,157.3 166.4 1,147.7 416.6 22.7 3,910.7 Europe 105.1 99.3 158.1 156.0 — 518.5 Asia Pacific 581.6 22.2 98.4 85.0 — 787.2 Latin America, except Brazil 63.9 (0.7 ) 102.3 45.2 — 210.7 Brazil (6.9 ) 479.6 46.7 140.6 3.3 663.3 Other 15.9 58.7 0.1 38.8 — 113.5 Total 2,916.9 825.5 1,553.3 882.2 26.0 6,203.9 |
Summary of Assets by Operating Segment | Assets by operating segment - year ended December 31, 2018: Commercial Defense and Executive Service and Support Other Total Unallocated Total Trade accounts receivable 5.8 111.2 1.3 192.2 7.5 318.0 — 318.0 Property, plant and equipment 688.8 295.6 544.0 435.6 0.7 1,964.7 — 1,964.7 Intangible assets 862.5 11.0 829.0 — 78.4 1,780.9 117.9 1,898.8 Total 1,557.1 417.8 1,374.3 627.8 86.6 4,063.6 117.9 4,181.5 Assets by operating segment - year ended December 31, 2017 (Restated): Commercial Defense Executive Service and Support Other Total Unallocated Total Trade accounts receivable 2.7 22.9 6.8 256.3 8.2 296.9 — 297.0 Property, plant and equipment 781.3 578.4 298.7 445.8 0.7 2,104.9 — 2,104.9 Intangible assets 793.1 5.7 881.9 — 64.9 1,745.6 136.8 1,882.4 Total 1,577.1 607.0 1,187.4 702.1 73.8 4,147.4 136.8 4,284.3 |
Summary of Assets by Geographical Area | Assets by geographic area - year ended December 31, 2018: North Europe Asia Pacific Brazil Total Trade accounts receivable 83.9 106.4 8.8 118.9 318.0 Property, plant and equipment 351.1 501.6 57.1 1,054.9 1,964.7 Intangible assets 53.6 5.7 — 1,839.5 1,898.8 Total 488.6 613.7 65.9 3,013.3 4,181.5 Assets by geographic area - year ended December 31, 2017 (Restated): North Europe Asia Pacific Brazil Total Trade accounts receivable 36.8 45.0 3.5 211.7 297.0 Property, plant and equipment 378.0 555.4 56.3 1,115.2 2,104.9 Intangible assets 31.2 6.8 — 1,844.4 1,882.4 Total 446.0 607.2 59.8 3,171.3 4,284.3 |
Operations - Additional Informa
Operations - Additional Information (Detail) | Dec. 17, 2018 |
Nature of operations [line items] | |
Percentage of ownership interest held by subsidiaries in joint operations | 20.00% |
New markets [member] | |
Nature of operations [line items] | |
Percentage of ownership interest held by subsidiaries in joint operations | 51.00% |
Boeing company [member] | |
Nature of operations [line items] | |
Percentage of ownership interest held by subsidiaries in joint operations | 80.00% |
Boeing company [member] | New markets [member] | |
Nature of operations [line items] | |
Percentage of ownership interest held by subsidiaries in joint operations | 49.00% |
Presentation of the Financial_4
Presentation of the Financial Statements and Accounting Practices - Additional Information (Detail) - USD ($) $ in Millions | Dec. 17, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2016 | Jan. 01, 2016 |
Disclosure of basis of preparation of financial statements [line items] | ||||||
Percentage of ownership interest in an investee | 100.00% | |||||
Percentage of ownership interest held by subsidiaries in joint operations | 20.00% | |||||
Contract assets | $ 358 | $ 447.5 | $ 370.6 | $ 370.6 | $ 387.7 | |
Contract liabilities | $ 1,243.6 | 1,126.6 | 1,244.8 | |||
Description on period of activity of inventories | Probable losses on inventories of spare parts are recognized based on technical obsolescence or items without activity for over two years and for which there is no future demand. | |||||
Percentage of dividend and interest on capital on net income | 25.00% | |||||
Bottom of range [member] | ||||||
Disclosure of basis of preparation of financial statements [line items] | ||||||
Effective percentage of hedging instruments | 80.00% | |||||
Warranty coverage period | 3 years | |||||
Top of range [member] | ||||||
Disclosure of basis of preparation of financial statements [line items] | ||||||
Effective percentage of hedging instruments | 125.00% | |||||
Warranty coverage period | 6 years | |||||
Computer software [member] | ||||||
Disclosure of basis of preparation of financial statements [line items] | ||||||
Description on tenure of benefits derived from intangible assets | Development costs directly attributable to identifiable and unique software, controlled by the Company and that is expected to generate benefits greater than the costs for more than one year, are recorded in intangible assets. | |||||
Employee profit sharing plan [member] | ||||||
Disclosure of basis of preparation of financial statements [line items] | ||||||
Percentage of employee profit sharing of net income | 12.50% | |||||
Percentage of total amount of profit sharing equally divided to employees | 50.00% | |||||
Percentage of other profit sharing proportion to employees salary | 50.00% | |||||
Increase (decrease) due to application of IFRS 15 [member] | ||||||
Disclosure of basis of preparation of financial statements [line items] | ||||||
Contract assets | 447.5 | 370.6 | $ 370.6 | $ 387.7 | ||
Contract liabilities | $ 1,126.6 | $ 1,244.8 | ||||
Brazil [member] | ||||||
Disclosure of basis of preparation of financial statements [line items] | ||||||
Nominal rate of current income tax | 34.00% | |||||
Percentage of income tax rate | 25.00% | |||||
Percentage of social contribution on net income | 9.00% | |||||
SAVIS Tecnologia e Sistemas S.A. [member] | ||||||
Disclosure of basis of preparation of financial statements [line items] | ||||||
Percentage of ownership interest held by subsidiaries in joint operations | 93.50% | |||||
SAVIS Tecnologia e Sistemas S.A. [member] | Brazil [member] | ||||||
Disclosure of basis of preparation of financial statements [line items] | ||||||
Percentage of ownership interest in an investee | 100.00% | |||||
Embraer S.A [member] | ||||||
Disclosure of basis of preparation of financial statements [line items] | ||||||
Percentage of ownership interest held by subsidiaries in joint operations | 6.50% |
Presentation of the Financial_5
Presentation of the Financial Statements and Accounting Practices - Summary of Company's Corporates Structure (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
ELEB - Equipamentos Ltda. [member] | |
Disclosure of subsidiaries [line items] | |
Country | Brazil |
ELEB - Equipamentos Ltda. [member] | Brazil [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Sale of hydraulic and mechanical equipment for the aviation industry |
Embraer Aircraft Holding Inc. [member] | |
Disclosure of subsidiaries [line items] | |
Country | EUA |
Embraer Aircraft Holding Inc. [member] | EUA [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Concentrates corporate activities in the USA |
Embraer Aircraft Customer Services Inc. [member] | |
Disclosure of subsidiaries [line items] | |
Country | EUA |
Embraer Aircraft Customer Services Inc. [member] | EUA [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Sale of spare parts and support services in North America and the Caribbean |
Embraer Aircraft Maintenance Services Inc. [member] | |
Disclosure of subsidiaries [line items] | |
Country | EUA |
Embraer Aircraft Maintenance Services Inc. [member] | EUA [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Maintenance of aircraft and components |
Embraer Business Innovation Center, Inc. [member] | |
Disclosure of subsidiaries [line items] | |
Country | EUA |
Embraer Business Innovation Center, Inc. [member] | EUA [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Develops technological innovation research in aviation and related areas |
Embraer Executive Jet Services, LLC [member] | |
Disclosure of subsidiaries [line items] | |
Country | EUA |
Embraer Executive Jet Services, LLC [member] | EUA [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | After sale support and aircraft maintenance |
Embraer Executive Aircraft, Inc. [member] | |
Disclosure of subsidiaries [line items] | |
Country | EUA |
Embraer Executive Aircraft, Inc. [member] | EUA [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Final assembly and delivery of executive jets |
Embraer Engineering &Technology Center USA, Inc. [member] | |
Disclosure of subsidiaries [line items] | |
Country | EUA |
Embraer Engineering &Technology Center USA, Inc. [member] | EUA [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Engineering services related to aircraft research and development |
Embraer Aero Seating Technologies, LLC [member] | |
Disclosure of subsidiaries [line items] | |
Country | EUA |
Embraer Aero Seating Technologies, LLC [member] | EUA [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Production and maintenance of aircraft seats |
Embraer Defense and Security Inc. [member] | |
Disclosure of subsidiaries [line items] | |
Country | EUA |
Embraer Defense and Security Inc. [member] | EUA [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Supply of Super Tucano aircraft to the American Air Force (LAS) |
Embraer CAE Training Services LLC [member] | |
Disclosure of subsidiaries [line items] | |
Country | EUA |
Embraer CAE Training Services LLC [member] | EUA [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 51.00% |
Core activities | Pilot, mechanic and crew training |
Embraer Aviation Europe EAE [member] | |
Disclosure of subsidiaries [line items] | |
Country | France |
Embraer Aviation Europe EAE [member] | France [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Concentrates corporate activities abroad, specifically Europe |
Embraer Aviation International EAI [member] | |
Disclosure of subsidiaries [line items] | |
Country | France |
Embraer Aviation International EAI [member] | France [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Sale of parts and after sale services in Europe, Africa and the Middle East |
Embraer Europe SARL [member] | |
Disclosure of subsidiaries [line items] | |
Country | France |
Embraer Europe SARL [member] | France [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Commercial representation of the Company in Europe, Africa and the Middle East |
Embraer Defesa And Segurana Participacoes S.A. [member] | |
Disclosure of subsidiaries [line items] | |
Country | Brazil |
Embraer Defesa And Segurana Participacoes S.A. [member] | Brazil [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Coordinates investments in the Defense & Security segments |
Atech Negocios em Tecnologias S.A. [member] | |
Disclosure of subsidiaries [line items] | |
Country | Brazil |
Atech Negocios em Tecnologias S.A. [member] | Brazil [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Development and control, communications, computer and intelligence services |
Visiona Tecnologia Espacial S.A. [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 51.00% |
Country | Brazil |
Visiona Tecnologia Espacial S.A. [member] | Brazil [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 51.00% |
Core activities | Supply of the Brazilian Government's Geostationary Defense and Strategic Communications Satellite System (SGDC) |
Visiona Internacional B.V. [member] | |
Disclosure of subsidiaries [line items] | |
Country | Holanda |
Visiona Internacional B.V. [member] | Holanda [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Integration and supply of the Brazilian Government's (SGDC) System |
SAVIS Tecnologia e Sistemas S.A. [member] | |
Disclosure of subsidiaries [line items] | |
Country | Brazil |
SAVIS Tecnologia e Sistemas S.A. [member] | Brazil [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Operates in Defense and Security with the Brazilian Government |
Embraer GPX Ltda [member] | |
Disclosure of subsidiaries [line items] | |
Country | Brazil |
Embraer GPX Ltda [member] | Brazil [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Aircraft maintenance services |
Embraer Netherlands Finance BV [member] | |
Disclosure of subsidiaries [line items] | |
Country | Holland |
Embraer Netherlands Finance BV [member] | Holland [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Financial operations raising and investing funds of the Embraer Group |
Embraer Netherlands B V [member] | |
Disclosure of subsidiaries [line items] | |
Country | Holland |
Embraer Netherlands B V [member] | Holland [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Concentrates corporate activities abroad |
Embraer Asia Pacific PTE. Ltd. [member] | |
Disclosure of subsidiaries [line items] | |
Country | Singapore |
Embraer Asia Pacific PTE. Ltd. [member] | Singapore [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | After sale services and support in Asia |
Airholding SGPS S.A. [member] | |
Disclosure of subsidiaries [line items] | |
Country | Portugal |
Airholding SGPS S.A. [member] | Portugal [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Coordinates investments in subsidiaries in Portugal |
OGMA - Industria Aeronautica de Portugal S.A. [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 65.00% |
Country | Portugal |
OGMA - Industria Aeronautica de Portugal S.A. [member] | Portugal [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 65.00% |
Core activities | Aviation maintenance and production |
Embraer CAE Training Services (UK) Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country | United Kingdom |
Embraer CAE Training Services (UK) Limited [member] | United Kingdom [Member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 51.00% |
Core activities | No operations |
Embraer Portugal S.A. [member] | |
Disclosure of subsidiaries [line items] | |
Country | Portugal |
Embraer Portugal S.A. [member] | Portugal [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Coordinates investments and economic activities in subsidiaries in Portugal |
Embraer Portugal Estruturas Metalicas SA [member] | |
Disclosure of subsidiaries [line items] | |
Country | Portugal |
Embraer Portugal Estruturas Metalicas SA [member] | Portugal [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Fabrication of steel parts and products for the aviation industry |
Embraer Portugal Estruturasem Compositos SA [member] | |
Disclosure of subsidiaries [line items] | |
Country | Portugal |
Embraer Portugal Estruturasem Compositos SA [member] | Portugal [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Fabrication of composite parts and products for the aviation industry |
Embraer (China) Aircraft Technical Services Company Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country | China |
Embraer (China) Aircraft Technical Services Company Limited [member] | China [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Sales and maintenance for after sales support in China |
EZ Air Interior Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country | Ireland |
EZ Air Interior Limited [member] | Ireland [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 50.00% |
Core activities | Fabrication of interiors for commercial aircraft |
Embraer Overseas Ltd. [member] | |
Disclosure of subsidiaries [line items] | |
Country | Cayman Islands |
Embraer Overseas Ltd. [member] | Cayman Islands [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Financial operations raising and investing funds of the Embraer Group |
Embraer Spain Holding Co. SL [member] | |
Disclosure of subsidiaries [line items] | |
Country | Spain |
Embraer Spain Holding Co. SL [member] | Spain [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Concentrates corporate activities abroad |
ECC Investment Switzerland AG [member] | |
Disclosure of subsidiaries [line items] | |
Country | Switzerland |
ECC Investment Switzerland AG [member] | Switzerland [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Coordinates investments in subsidiaries abroad |
ECC Insurance And Financial Company Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country | Cayman Islands |
ECC Insurance And Financial Company Limited [member] | Cayman Islands [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Covers financial guarantees offered in aircraft sale structuring |
Embraer Finance Ltd. [member] | |
Disclosure of subsidiaries [line items] | |
Country | Cayman Islands |
Embraer Finance Ltd. [member] | Cayman Islands [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | Support to the Company in structuring specific operations |
Embraer Merco S.A. [member] | |
Disclosure of subsidiaries [line items] | |
Country | Uruguay |
Embraer Merco S.A. [member] | Uruguay [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Core activities | No operations -in the process of settlement |
Presentation of the Financial_6
Presentation of the Financial Statements and Accounting Practices - Summary of Impacts of Adoption of IFRS 9 and IFRS 15 on Consolidated Statements of Financial Position (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2016 | Jan. 01, 2016 | Dec. 31, 2015 |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Financial investments | $ 1,743.4 | $ 2,366.1 | $ 1,775.6 | $ 1,775.6 | ||
Trade accounts receivables, net | 318 | 297 | 336.8 | 336.8 | $ 430.2 | |
Contract assets | 358 | 447.5 | 370.6 | 370.6 | 387.7 | |
Other current assets | 3,969 | 4,340.6 | 5,629.7 | |||
Total current assets | 7,071 | 7,079.6 | 6,823.6 | 6,823.6 | 6,447.6 | |
Financial investments | 183.5 | 251.2 | 173.1 | 173.1 | 740.6 | |
Deferred income tax and social contribution | 21.6 | 13.4 | 11.6 | 11.6 | 15.7 | |
Investments | 6.3 | 5.6 | 3.9 | |||
Other non-currentassets | 4,624.8 | 4,711.5 | 4,503.8 | |||
Total non-current assets | 4,222.3 | 4,895 | 4,896.2 | 4,896.2 | 5,260.1 | |
TOTAL ASSETS | 11,293.3 | 11,974.6 | 1,719.8 | 11,719.8 | 11,707.7 | |
Contract liabilities | 1,045.4 | 1,001.1 | 1,086.8 | 1,086.8 | 1,136.8 | |
Provisions | 116.9 | 124.1 | 123.8 | 123.9 | 89.7 | |
Unearned income | 2 | |||||
Other current liabilities | 1,678 | 2,017.2 | 1,920.9 | |||
Total Current Liabilities | 3,028.6 | 2,803.2 | 3,227.8 | 3,227.9 | 3,147.4 | |
Contract liabilities | 198.2 | 125.5 | 158 | 157.9 | ||
Deferred income tax and social contribution | 254 | 258 | 265.2 | 265.2 | 413.1 | |
Unearned income | 73.2 | 91.7 | 106.9 | 106.9 | 226.9 | |
Other non-currentliabilities | 4,518.7 | 4,025.5 | 4,101.2 | |||
Total non-current liabilities | 4,324.6 | 4,993.9 | 4,555.6 | 4,555.5 | 4,741.2 | |
Equity | 3,940.1 | 4,177.5 | 3,936.4 | 3,936.4 | 3,819.1 | $ 3,819.1 |
TOTAL LIABILITIES | $ 11,293.3 | 11,974.6 | 11,719.8 | 11,719.8 | 11,707.7 | |
Previously stated [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Financial investments | 2,365.6 | 1,775.5 | ||||
Trade accounts receivables, net | 717.2 | 665.3 | 781.9 | |||
Other current assets | 3,969 | 4,340.6 | 5,629.7 | |||
Total current assets | 7,051.8 | 6,781.4 | 6,411.6 | |||
Financial investments | 251.3 | 168.3 | 749.6 | |||
Deferred income tax and social contribution | 2.9 | 3.6 | 4.5 | |||
Investments | 5.6 | |||||
Other non-currentassets | 4,624.8 | 4,711.5 | 4,503.8 | |||
Total non-current assets | 4,884.6 | 4,883.4 | 5,257.9 | |||
TOTAL ASSETS | 11,936.4 | 11,664.8 | 11,669.5 | |||
Advances from customers | 799.2 | 716.4 | 743.8 | |||
Provisions | 141.4 | 135.8 | 95.7 | |||
Unearned income | 164.1 | 311.5 | 320 | |||
Other current liabilities | 1,678 | 2,017.2 | 1,920.9 | |||
Total Current Liabilities | 2,782.7 | 3,180.9 | 3,080.4 | |||
Advances from customers | 104.1 | 139.8 | 164.1 | |||
Deferred income tax and social contribution | 251.4 | 263.5 | 417.3 | |||
Unearned income | 97.5 | 113.9 | 62.8 | |||
Other non-currentliabilities | 4,518.7 | 4,025.5 | 4,101.2 | |||
Total non-current liabilities | 4,971.7 | 4,542.7 | 4,745.4 | |||
Equity | 4,182 | 3,941.2 | 3,843.7 | 3,843.7 | ||
TOTAL LIABILITIES | 11,936.4 | 11,664.8 | 11,669.5 | |||
Increase (decrease) due to application of IFRS 15 [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Trade accounts receivables, net | (432.8) | (345.1) | (360.6) | |||
Contract assets | 447.5 | $ 370.6 | 370.6 | 387.7 | ||
Total current assets | 14.7 | 25.5 | 27.1 | |||
Deferred income tax and social contribution | 13 | 10.7 | 14.2 | |||
Total non-current assets | 13 | 10.7 | 14.2 | |||
TOTAL ASSETS | 27.7 | 36.2 | 41.3 | |||
Contract liabilities | 1,001.1 | 1,086.8 | 1,136.8 | |||
Advances from customers | (799.2) | (716.4) | (743.8) | |||
Provisions | (17.3) | (11.9) | (6) | |||
Unearned income | (164.1) | (311.5) | (320) | |||
Total Current Liabilities | 20.5 | 47 | 67 | |||
Contract liabilities | 125.5 | 157.9 | ||||
Advances from customers | (104.1) | (139.8) | (164.1) | |||
Deferred income tax and social contribution | 4.6 | (1.3) | (2.2) | |||
Unearned income | (5.8) | (7) | 164.1 | |||
Total non-current liabilities | 20.2 | 9.8 | (2.2) | |||
Equity | (13) | (20.6) | (23.5) | (23.5) | ||
TOTAL LIABILITIES | 27.7 | 36.2 | 41.3 | |||
Increase (decrease) due to application of IFRS 9 [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Financial investments | 0.5 | 0.1 | ||||
Trade accounts receivables, net | 12.6 | 16.6 | 8.9 | |||
Total current assets | 13.1 | 16.7 | 8.9 | |||
Financial investments | (0.1) | 4.8 | (9) | |||
Deferred income tax and social contribution | (2.5) | (2.7) | (3) | |||
Total non-current assets | (2.6) | 2.1 | (12) | |||
TOTAL ASSETS | 10.5 | 18.8 | (3.1) | |||
Deferred income tax and social contribution | 2 | 3 | (2) | |||
Total non-current liabilities | 2 | 3 | (2) | |||
Equity | 8.5 | 15.8 | (1.1) | $ (1.1) | ||
TOTAL LIABILITIES | $ 10.5 | $ 18.8 | $ (3.1) |
Presentation of the Financial_7
Presentation of the Financial Statements and Accounting Practices - Summary of Impacts of Adoption of IFRS 9 and IFRS 15 on Consolidated Statements of Income (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
REVENUE | $ 5,071.1 | $ 5,859.4 | $ 6,203.9 |
Cost of sales and services | (4,303.1) | (4,764.1) | (4,982) |
Gross Profit | 768 | 1,095.3 | 1,221.9 |
Operating income (expense) | (753.4) | (1,008.2) | |
OPERATING PROFIT BEFORE FINANCIAL INCOME | 35.3 | 341.9 | 213.7 |
Financial result | (34) | (33.1) | |
PROFIT (LOSS) BEFORE TAXES ON INCOME | (136.2) | 307.9 | 180.6 |
Income tax expense (income) | (35) | (27.9) | (0.3) |
NET INCOME (LOSS) FOR THE PERIOD | (171.2) | 280 | 180.3 |
Atributable to: | |||
Owners of Embraer | (178.2) | 264 | 178.6 |
Noncontrolling interest | $ 7 | $ 16 | $ 1.7 |
Earnings per share-basic in US$ | $ (0.24) | $ 0.36 | $ 0.24 |
Earnings per share-diluted in US$ | $ (0.24) | $ 0.36 | $ 0.24 |
Previously stated [member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
REVENUE | $ 5,839.3 | $ 6,217.5 | |
Cost of sales and services | (4,773.3) | (4,980.7) | |
Gross Profit | 1,066 | 1,236.8 | |
Operating income (expense) | (736.7) | (1,030.8) | |
OPERATING PROFIT BEFORE FINANCIAL INCOME | 329.3 | 206 | |
Financial result | (41) | (47) | |
PROFIT (LOSS) BEFORE TAXES ON INCOME | 288.3 | 159 | |
Income tax expense (income) | (25.5) | 8.7 | |
NET INCOME (LOSS) FOR THE PERIOD | 262.8 | 167.7 | |
Atributable to: | |||
Owners of Embraer | 246.8 | 166.1 | |
Noncontrolling interest | $ 16 | $ 1.7 | |
Earnings per share-basic in US$ | $ 0.34 | $ 0.23 | |
Earnings per share-diluted in US$ | $ 0.34 | $ 0.23 | |
Increase (decrease) due to application of IFRS 15 [member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
REVENUE | $ 20.1 | $ (13.6) | |
Cost of sales and services | 9.2 | (1.3) | |
Gross Profit | 29.3 | (14.9) | |
Operating income (expense) | (12.7) | 14.9 | |
OPERATING PROFIT BEFORE FINANCIAL INCOME | 16.6 | ||
PROFIT (LOSS) BEFORE TAXES ON INCOME | 16.6 | ||
Income tax expense (income) | (3.6) | (4.4) | |
NET INCOME (LOSS) FOR THE PERIOD | 13 | (4.4) | |
Atributable to: | |||
Owners of Embraer | 13 | (4.4) | |
Increase (decrease) due to application of IFRS 9 [member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Operating income (expense) | (4) | 7.7 | |
OPERATING PROFIT BEFORE FINANCIAL INCOME | (4) | 7.7 | |
Financial result | 7 | 13.9 | |
PROFIT (LOSS) BEFORE TAXES ON INCOME | 3 | 21.6 | |
Income tax expense (income) | 1.2 | (4.6) | |
NET INCOME (LOSS) FOR THE PERIOD | 4.2 | 17 | |
Atributable to: | |||
Owners of Embraer | $ 4.2 | $ 17 |
Presentation of the Financial_8
Presentation of the Financial Statements and Accounting Practices - Reconciliation of restated Consolidated Statements of Changes in Shareholders' Equity (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Beginning balance | $ 4,177.5 | $ 3,936.4 | $ 3,819.1 |
Decrease of accounts receivable impairment allowance | 16 | (4.6) | (140.7) |
Financial asset reclassification from available for sale to fair value through P&L | |||
Effect of deferred income tax over the adjustments | (148.2) | ||
Beginning balance | 4,177.5 | 3,936.4 | 3,819.1 |
Previously stated [member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Beginning balance | 4,182 | 3,941.2 | 3,843.7 |
Financial asset reclassification from available for sale to fair value through P&L | |||
Beginning balance | 4,182 | 3,941.2 | 3,843.7 |
Increase (decrease) due to application of IFRS 15 [member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Beginning balance | (13) | (20.6) | (23.5) |
Financial asset reclassification from available for sale to fair value through P&L | |||
Increase (decrease) of development contracts results due to contracts combinations and modifications | (2.5) | (7.8) | (16.1) |
Increase (decrease) of development contracts results due to changes in performance obligations identification | (20.8) | (32.1) | (23.8) |
Effect of foreign currency transactions in CTA | 1.9 | 7.3 | |
Effect of deferred income tax over the adjustments | 8.4 | 12 | 16.4 |
Beginning balance | (13) | (20.6) | (23.5) |
Increase (decrease) due to application of IFRS 9 [member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Beginning balance | 8.5 | 15.8 | (1.1) |
Decrease of accounts receivable impairment allowance | 12.6 | 16.6 | 8.9 |
Adjustment to fair value due to change in classification | 0.4 | 4.9 | (9) |
Financial asset reclassification from available for sale to fair value through P&L | |||
Financial asset reclassification from available for sale to fair value through P&L from Other cumulative translation adjustments (OCI) | (11.5) | ||
Financial asset reclassification from available for sale to fair value through P&L to Retained earnings | 11.5 | ||
Effect of deferred income tax over the adjustments | (4.5) | (5.7) | (1) |
Beginning balance | $ 8.5 | $ 15.8 | $ (1.1) |
Presentation of the Financial_9
Presentation of the Financial Statements and Accounting Practices - Summary of Financial Assets and Liabilities in the Original Measurement Categories by IAS 39 as Previously and the New Measurement Categories by Adopting of IFRS 9 (Detail) - USD ($) $ in Millions | Jan. 01, 2017 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2016 | Jan. 01, 2016 | Dec. 31, 2015 |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Cash and cash equivalents | $ 1,241.5 | $ 1,270.8 | $ 1,280.9 | $ 1,241.5 | $ 2,165.5 | |
Financial investments | 1,948.7 | 2,617.3 | 1,926.9 | |||
Guarantee Deposits | 393.9 | 349.7 | ||||
Derivative financial instruments | 34.3 | 9.5 | ||||
Collateralized accounts receivable | 288.7 | 235.9 | ||||
Contract assets | 370.6 | 447.5 | 358 | 370.6 | $ 387.7 | |
Trade accounts receivable, net | 336.8 | 297 | 318 | 336.8 | 430.2 | |
Customer and commercial financing | 16.4 | 11.7 | ||||
Other assets | 376.8 | 309 | ||||
Loans and financing | 3,759.9 | 4,198.5 | 3,647.6 | 3,759.9 | $ 4,229.9 | |
Trade accounts payable and others liabilities | 1,502.5 | 1,550.5 | ||||
Financial guarantee of residual value | 188 | 139.6 | 140.4 | |||
Capital lease | 8.9 | $ 8.1 | ||||
Derivative financial instruments | 0.1 | |||||
Increase (decrease) due to application of IFRS 9 [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Trade accounts receivable, net | 12.6 | $ 16.6 | $ 8.9 | |||
Loans and receivables to amortized cost [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Cash and cash equivalents | 1,241.5 | 1,270.8 | ||||
Guarantee Deposits | 511.4 | 393.9 | ||||
Collateralized accounts receivable | 323.3 | 288.7 | ||||
Contract assets | 370.6 | 447.5 | ||||
Trade accounts receivable, net | 336.8 | 297 | ||||
Customer and commercial financing | 37.4 | 16.4 | ||||
Other assets | $ 79.4 | $ 82.2 | ||||
Loans and receivables to amortized cost [member] | IAS 39 [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Category CPC 38/IAS 39 | Loans and receivables | Loans and receivables | ||||
Loans and receivables to amortized cost [member] | Increase (decrease) due to application of IFRS 9 [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Categoya CPC 48/IFRS 9 | Amortized cost | Amortized cost | ||||
Loans and receivables to fair value through other comprehensive income [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Financial investments | $ (1,067.9) | $ (1,307.6) | ||||
Loans and receivables to fair value through other comprehensive income [member] | IAS 39 [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Category CPC 38/IAS 39 | Loans and receivables | Loans and receivables | ||||
Loans and receivables to fair value through other comprehensive income [member] | Increase (decrease) due to application of IFRS 9 [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Categoya CPC 48/IFRS 9 | Fair value through other comprehensive income | Fair value through other comprehensive income | ||||
Measured at fair value through profit or loss to fair value through profit or loss [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Financial investments | $ (173.8) | |||||
Loans and financing | (1,357.4) | $ (1,264.3) | ||||
Capital lease | 8.9 | |||||
Available for sale to fair value through profit or loss [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Financial investments | $ 35 | $ 58.8 | ||||
Available for sale to fair value through profit or loss [member] | IAS 39 [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Category CPC 38/IAS 39 | Available for sale | Available for sale | ||||
Available for sale to fair value through profit or loss [member] | Increase (decrease) due to application of IFRS 9 [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Categoya CPC 48/IFRS 9 | Fair value through profit or loss | Fair value through profit or loss | ||||
Liabilities measured at amortized cost and other liabilities to amortized cost [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Loans and financing | $ 2,402.5 | $ 2,934.2 | ||||
Trade accounts payable and others liabilities | 1,722.4 | 1,502.5 | ||||
Financial guarantee of residual value | $ (122.2) | 30.8 | ||||
Liabilities measured at amortized cost and other liabilities to amortized cost [member] | IAS 39 [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Category CPC 38/IAS 39 | Liabilities measured at amortized cost and other liabilities | |||||
Liabilities measured at amortized cost and other liabilities to amortized cost [member] | Increase (decrease) due to application of IFRS 9 [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Categoya CPC 48/IFRS 9 | Amortized cost | |||||
Held to maturity fair value through other comprehensive income [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Financial investments | $ (620.9) | |||||
Held to maturity fair value through other comprehensive income [member] | IAS 39 [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Category CPC 38/IAS 39 | Held to maturity | |||||
Held to maturity fair value through other comprehensive income [member] | Increase (decrease) due to application of IFRS 9 [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Categoya CPC 48/IFRS 9 | Fair value through other comprehensive income | |||||
Held to maturity to Amortized Cost [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Financial investments | $ (51.1) | $ (50.5) | ||||
Held to maturity to Amortized Cost [member] | IAS 39 [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Category CPC 38/IAS 39 | Held to maturity | Held to maturity | ||||
Held to maturity to Amortized Cost [member] | Increase (decrease) due to application of IFRS 9 [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Categoya CPC 48/IFRS 9 | Amortized cost | Amortized cost | ||||
Fair value through profit or loss to Fair value through profit or loss [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Financial investments | $ 0.9 | |||||
Derivative financial instruments | $ 32.1 | 34.3 | ||||
Financial guarantee of residual value | $ (108.8) | |||||
Capital lease | 65.8 | |||||
Derivative financial instruments | $ 8.4 | |||||
Fair value through profit or loss to Fair value through profit or loss [member] | IAS 39 [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Category CPC 38/IAS 39 | Liabilities measured at amortized cost and other liabilities | |||||
Fair value through profit or loss to Fair value through profit or loss [member] | Increase (decrease) due to application of IFRS 9 [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Categoya CPC 48/IFRS 9 | Amortized cost | |||||
Held to maturity to fair value through profit or loss [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Financial investments | $ (1,199.5) | |||||
Held to maturity to fair value through profit or loss [member] | IAS 39 [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Category CPC 38/IAS 39 | Held to maturity | Held to maturity | ||||
Held to maturity to fair value through profit or loss [member] | Increase (decrease) due to application of IFRS 9 [member] | ||||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||||
Categoya CPC 48/IFRS 9 | Fair value through profit or loss | Fair value through profit or loss |
Critical Accounting Estimates_2
Critical Accounting Estimates and Significant Judgements - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disclosure of changes in accounting estimates [abstract] | |
Contract estimated costs and revenue | $ 127.2 |
Estimation of lower percentage of total cost of work in progress | 10.00% |
Estimation of higher percentage of total cost of work in progress | 10.00% |
Estimation of revenue recognition increased | $ 385.9 |
Estimation of revenue recognition decreased | 425.7 |
Higher or lower of deferred tax expense | $ 148.2 |
Percentage of devaluation or appreciation against dollar in relation to actual exchange | 10.00% |
Accounting Standards Not Yet _2
Accounting Standards Not Yet Adopted - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Accounting Policies [line items] | |
Description of lease | (1) transactions below US$ 5,000 will be outside the scope of this standard, (2) all contracts with less than 12 months will not be considered for the purposes of IFRS 16 and (3) in order to define the discount rates, Management considered adopting the practical expedient which considers grouping contracts with similar characteristics. |
Lease transaction amount | $ 5,000 |
Effect of transition to IFRSs [member] | Bottom of range [member] | |
Accounting Policies [line items] | |
Percentage of estimated effect of transition on assets | 0.50% |
Effect of transition to IFRSs [member] | Top of range [member] | |
Accounting Policies [line items] | |
Percentage of estimated effect of transition on assets | 1.00% |
Cash and Cash Equivalents - Sum
Cash and Cash Equivalents - Summary of Cash and Cash Equivalents (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Cash and cash equivalents [Line Items] | |||||
Cash and banks | $ 125.4 | $ 383.4 | |||
Cash | 125.4 | 383.4 | |||
Cash equivalents | |||||
Cash equivalents | 1,155.5 | 887.4 | |||
Cash and cash equivalents | 1,280.9 | 1,270.8 | $ 1,241.5 | $ 1,241.5 | $ 2,165.5 |
Private securities [member] | |||||
Cash equivalents | |||||
Cash equivalents | 352.6 | 219.4 | |||
Fixed deposits [member] | |||||
Cash equivalents | |||||
Cash equivalents | $ 802.9 | $ 668 |
Cash and Cash Equivalents - S_2
Cash and Cash Equivalents - Summary of Cash and Cash Equivalents (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fixed deposits [member] | ||
Cash and cash equivalents [Line Items] | ||
Borrowings, maturity | 90 days or less | 90 days or less |
Certificate of Deposit [member] | ||
Cash and cash equivalents [Line Items] | ||
Borrowings, maturity | 90 days or less | 90 days or less |
Financial Investments - Summary
Financial Investments - Summary of Financial Investments (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of financial assets [line items] | ||
Amortised cost | $ 48.8 | |
Fair value through other comprehensive income | 507.7 | |
Fair value through profit or loss | 1,370.4 | |
Total | 1,926.9 | |
Amortised cost, current portion | 1.1 | |
Amortised cost,non-current | 47.7 | |
Fair value through other comprehensive income, current portion | 507.7 | |
Fair value through other comprehensive income, non-current | 0 | |
Fair value through profit or loss, current portion | 1,234.6 | |
Fair value through profit or loss, non-current | 135.8 | |
Current portion, total | 1,743.4 | |
Non-current, total | 183.5 | |
Previously stated [member] | ||
Disclosure of financial assets [line items] | ||
Amortised cost | $ 50.5 | |
Fair value through other comprehensive income | 1,307.6 | |
Fair value through profit or loss | 1,259.2 | |
Total | 2,617.3 | |
Amortised cost, current portion | 1.3 | |
Amortised cost,non-current | 49.2 | |
Fair value through other comprehensive income, current portion | 1,307.6 | |
Fair value through other comprehensive income, non-current | 0 | |
Fair value through profit or loss, current portion | 1,057.2 | |
Fair value through profit or loss, non-current | 202 | |
Current portion, total | 2,366.1 | |
Non-current, total | 251.2 | |
Private securities [member] | ||
Disclosure of financial assets [line items] | ||
Fair value through other comprehensive income | 50.4 | |
Total | 50.4 | |
Private securities [member] | Previously stated [member] | ||
Disclosure of financial assets [line items] | ||
Fair value through other comprehensive income | 516 | |
Fair value through profit or loss | 0.6 | |
Total | 516.6 | |
Structured notes [member] | ||
Disclosure of financial assets [line items] | ||
Amortised cost | 48.8 | |
Fair value through profit or loss | 1,308 | |
Total | 1,356.8 | |
Structured notes [member] | Previously stated [member] | ||
Disclosure of financial assets [line items] | ||
Amortised cost | 50.5 | |
Fair value through profit or loss | 1,199.6 | |
Total | 1,250.1 | |
Fixed deposits [member] | ||
Disclosure of financial assets [line items] | ||
Fair value through other comprehensive income | 457.3 | |
Fair value through profit or loss | 0.1 | |
Total | 457.4 | |
Fixed deposits [member] | Previously stated [member] | ||
Disclosure of financial assets [line items] | ||
Fair value through other comprehensive income | 791.6 | |
Total | 791.6 | |
Investment funds [member] | ||
Disclosure of financial assets [line items] | ||
Fair value through profit or loss | 2.4 | |
Total | 2.4 | |
Other Financial Instruments [member] | ||
Disclosure of financial assets [line items] | ||
Fair value through profit or loss | 59.9 | |
Total | $ 59.9 | |
Other Financial Instruments [member] | Previously stated [member] | ||
Disclosure of financial assets [line items] | ||
Fair value through profit or loss | 59 | |
Total | $ 59 |
Financial Investments - Summa_2
Financial Investments - Summary of Financial Investments (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Private securities [member] | ||
Disclosure of financial assets [line items] | ||
Borrowings, maturity | More than 90 days | |
Structured notes [member] | ||
Disclosure of financial assets [line items] | ||
Guarantee deposits | $ 83.2 | $ 222.2 |
Investment of Guarantee deposits | $ 123.4 | |
Structured notes maturity period | 15-year | |
Fixed deposits [member] | ||
Disclosure of financial assets [line items] | ||
Borrowings, maturity | higher than 90 days | |
Financial institution and Brazilian Government [member] | Structured notes [member] | ||
Disclosure of financial assets [line items] | ||
Credit risk | $ 1,103.7 | $ 855.1 |
Financial Investments - Additio
Financial Investments - Additional Information (Detail) - Cash and Cash Equivalent and Financial Investments [member] | Dec. 31, 2018 | Dec. 31, 2017 |
Brazil, Brazil Real [member] | ||
Disclosure of financial assets [line items] | ||
Weighted average interest rate | 6.56% | 10.18% |
United States of America, Dollars [member] | ||
Disclosure of financial assets [line items] | ||
Weighted average interest rate | 2.40% | 1.70% |
Trade Accounts Receivable, Ne_2
Trade Accounts Receivable, Net - Summary of Trade Accounts Receivable, Net (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of trade accounts receivables [line items] | |||||
Trade accounts receivable | $ 363 | ||||
Allowance for doubtful accounts | (45) | $ (52.9) | |||
Trade accounts receivable, net | 318 | 297 | |||
Previously stated [member] | |||||
Disclosure of trade accounts receivables [line items] | |||||
Trade accounts receivable | 349.9 | $ 378.4 | |||
Allowance for doubtful accounts | (52.9) | (41.6) | $ (41.6) | $ (38.4) | |
Trade accounts receivable, net | 297 | 336.8 | |||
Foreign customers [member] | |||||
Disclosure of trade accounts receivables [line items] | |||||
Trade accounts receivable | 325.7 | ||||
Foreign customers [member] | Previously stated [member] | |||||
Disclosure of trade accounts receivables [line items] | |||||
Trade accounts receivable | 306.3 | 305 | |||
Brazilian Air force [member] | |||||
Disclosure of trade accounts receivables [line items] | |||||
Trade accounts receivable | 21.8 | ||||
Brazilian Air force [member] | Previously stated [member] | |||||
Disclosure of trade accounts receivables [line items] | |||||
Trade accounts receivable | 14.4 | 9.1 | |||
Domestic customers [member] | |||||
Disclosure of trade accounts receivables [line items] | |||||
Trade accounts receivable | $ 15.5 | ||||
Domestic customers [member] | Previously stated [member] | |||||
Disclosure of trade accounts receivables [line items] | |||||
Trade accounts receivable | $ 29.2 | $ 64.3 |
Trade Accounts Receivable, Ne_3
Trade Accounts Receivable, Net - Summary of Past Due Accounts Receivable (Detail) - Financial assets past due but not impaired [member] - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of trade accounts receivables [line items] | |||
Current | $ 217 | ||
Trade accounts receivable, net | 363 | ||
Not later than three months [member] | |||
Disclosure of trade accounts receivables [line items] | |||
Trade accounts receivable, net | 52.6 | ||
From 91 to 180 days [member] | |||
Disclosure of trade accounts receivables [line items] | |||
Trade accounts receivable, net | 13.6 | ||
More than 180 days [member] | |||
Disclosure of trade accounts receivables [line items] | |||
Trade accounts receivable, net | $ 79.8 | ||
Previously stated [member] | |||
Disclosure of trade accounts receivables [line items] | |||
Current | $ 223.6 | $ 279.6 | |
Trade accounts receivable, net | 349.9 | 378.4 | |
Previously stated [member] | Not later than three months [member] | |||
Disclosure of trade accounts receivables [line items] | |||
Trade accounts receivable, net | 48.6 | 49.6 | |
Previously stated [member] | From 91 to 180 days [member] | |||
Disclosure of trade accounts receivables [line items] | |||
Trade accounts receivable, net | 15.7 | 19.5 | |
Previously stated [member] | More than 180 days [member] | |||
Disclosure of trade accounts receivables [line items] | |||
Trade accounts receivable, net | $ 62 | $ 29.7 |
Trade Accounts Receivable, Ne_4
Trade Accounts Receivable, Net - Summary of Changes in Estimated Losses on Settlement (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of trade accounts receivables [line items] | |||
Beginning balance | $ (52.9) | ||
Additions | (5.8) | ||
Reversal | 17.7 | ||
Write-off | 3.6 | ||
Foreign exchange variation | (7.6) | ||
Ending balance | (45) | $ (52.9) | |
Previously stated [member] | |||
Disclosure of trade accounts receivables [line items] | |||
Beginning balance | $ (52.9) | (41.6) | $ (38.4) |
Additions | (22.1) | (36) | |
Reversal | 9.9 | 12.5 | |
Write-off | 5.2 | 10.3 | |
Foreign exchange variation | (4.3) | 10 | |
Ending balance | $ (52.9) | $ (41.6) |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of Derivative Financial Instruments (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial instrument assets and liability | $ 1.4 | $ 25.4 |
Equity investments [member] | Interest rate risk [member] | Santander [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial instrument assets and liability | (0.1) | |
Equity investments [member] | Interest rate risk [member] | BNP Paribas [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial instrument assets and liability | (0.1) | |
Equity investments [member] | Interest rate risk [member] | Bradesco [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial instrument assets and liability | (1.1) | |
Other derivatives [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial instrument assets and liability | $ 0.2 | 0.6 |
Real expenses [member] | Currency swap contract [member] | Currency risk [member] | Citibank [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement date | 2019 | |
Derivative financial instrument assets and liability | $ (1.9) | 0.8 |
Real expenses [member] | Currency swap contract [member] | Currency risk [member] | BofaMLynch [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial instrument assets and liability | 0.3 | |
Real expenses [member] | Currency swap contract [member] | Currency risk [member] | Santander [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement date | 2019 | |
Derivative financial instrument assets and liability | $ (1.2) | 1.4 |
Real expenses [member] | Currency swap contract [member] | Currency risk [member] | BNP Paribas [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement date | 2019 | |
Derivative financial instrument assets and liability | $ (1.2) | 1.3 |
Real expenses [member] | Currency swap contract [member] | Currency risk [member] | Bradesco [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement date | 2019 | |
Derivative financial instrument assets and liability | $ (1.9) | |
Real expenses [member] | Currency swap contract [member] | Currency risk [member] | ItauBBA [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement date | 2019 | |
Derivative financial instrument assets and liability | $ (1.3) | |
Export financing [member] | Interest swap [member] | Interest rate risk [member] | BofaMLynch [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial instrument assets and liability | 4.5 | |
Export financing [member] | Interest swap [member] | Interest rate risk [member] | Santander [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement date | 2019 | |
Derivative financial instrument assets and liability | $ 0.9 | 5 |
Export financing [member] | Interest swap [member] | Interest rate risk [member] | Bradesco [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial instrument assets and liability | 3.7 | |
Export financing [member] | Swap contract [member] | Exchange and currency risk rate [member] | Santander [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial instrument assets and liability | (0.1) | |
Export financing [member] | Swap contract [member] | Exchange and currency risk rate [member] | ItauBBA [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement date | 2027 | |
Derivative financial instrument assets and liability | $ 2.3 | 0.5 |
Export financing [member] | Swap contract [member] | Other derivatives [member] | Currency risk [member] | BNP Paribas [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial instrument assets and liability | 0.1 | |
Export financing [member] | Swap contract [member] | Other derivatives [member] | Currency risk [member] | Natixis [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial instrument assets and liability | (0.3) | |
Export financing [member] | Swap contract [member] | Other derivatives [member] | Currency risk [member] | Santander Totta [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement date | 2019 | |
Project development expense [member] | Interest swap [member] | Interest rate risk [member] | BofaMLynch [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement date | 2022 | |
Derivative financial instrument assets and liability | $ 0.5 | 0.7 |
Project development expense [member] | Interest swap [member] | Interest rate risk [member] | Santander [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement date | 2022 | |
Derivative financial instrument assets and liability | $ 1.7 | 2.7 |
Project development expense [member] | Interest swap [member] | Interest rate risk [member] | Bradesco [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement date | 2022 | |
Derivative financial instrument assets and liability | $ 0.4 | 0.7 |
Project development expense [member] | Interest swap [member] | Interest rate risk [member] | Votorantim [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement date | 2022 | |
Derivative financial instrument assets and liability | $ 0.3 | 0.5 |
Project development expense [member] | Interest swap [member] | Interest rate risk [member] | ItauBBA [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement date | 2023 | |
Derivative financial instrument assets and liability | $ 0.3 | 0.3 |
Project development expense [member] | Interest swap [member] | Interest rate risk [member] | HSBC [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement date | 2022 | |
Derivative financial instrument assets and liability | $ 0.3 | 0.4 |
Project development expense [member] | Interest swap [member] | Interest rate risk [member] | Societe Generale [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement date | 2022 | |
Derivative financial instrument assets and liability | $ 0.2 | 0.2 |
Project development expense [member] | Interest swap [member] | Interest rate risk [member] | Safra [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement date | 2022 | |
Derivative financial instrument assets and liability | $ 0.1 | 0.2 |
Project development expense [member] | Interest swap [member] | Interest rate risk [member] | Morgan Stanley S And A [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement date | 2022 | |
Derivative financial instrument assets and liability | $ 1.7 | 3 |
Recourse and non recourse debt [member] | Other derivatives [member] | Zero cost collar [member] | Interest rate risk [member] | Natixis [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement date | 2022 | |
Derivative financial instrument assets and liability | $ 0.3 | 1 |
Acquisition of property plant and equipment [member] | Interest swap [member] | Other derivatives [member] | Interest rate risk [member] | Compass bank [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement date | 2024 | |
Derivative financial instrument assets and liability | $ (0.1) | (0.2) |
Hedged item [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial instrument assets and liability | $ 1.2 | $ 24.8 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Derivative Financial Instruments (Parenthetical) (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)R$ / shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial instrument assets and liability | $ 1.4 | $ 25.4 | |
Forward contract [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial instrument assets and liability | $ 2.5 | ||
Zero cost collar [member] | Scenario Forecast [member] | Cash flow [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial instrument assets and liability | $ 296.7 | ||
Zero cost collar [member] | Written Put Options [Member] | Scenario Forecast [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Investments options exercise price | R$ / shares | $ 3.43 | ||
Zero cost collar [member] | Sold Call Option [member] | Scenario Forecast [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Investments options exercise price | R$ / shares | $ 4.10 | ||
Interest swap [member] | Fixed interest rate [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Average interest rate | 4.51% | ||
Interest swap [member] | floating interest rate [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Annual interest rate based on interbank deposit certificate | 34.49% | ||
Interest swap [member] | Cash flow [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial instrument assets and liability | $ 277.6 | ||
Export financing [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Annual interest rate based on LIBOR base rate plus | 2.37% | ||
Export financing [member] | Hedged item [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial instrument assets and liability | $ 100 | ||
Recourse and non recourse debt [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial instrument assets and liability | $ 7.3 | ||
Recourse and non recourse debt [member] | Fixed interest rate [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Average interest rate | 8.40% | ||
Recourse and non recourse debt [member] | floating interest rate [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
LIBOR rate interest period | 6 months | ||
Annual interest rate based on LIBOR base rate plus | 1.15% | ||
Acquisition of property plant and equipment [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Derivative financial instrument assets and liability | $ 3.2 | ||
LIBOR rate interest period | 1 month | ||
Annual interest rate based on LIBOR base rate plus | 2.44% | ||
Acquisition of property plant and equipment [member] | Fixed interest rate [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Average interest rate | 5.23% |
Derivative Financial Instrume_5
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair value hedges [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities at amortised cost | $ 3,647.6 | $ 4,198.3 |
Financial instruments designated as hedging instruments, at fair value | $ 3,648.4 | $ 4,198.5 |
Hedge effectiveness ratio | 100.00% | |
Hedge effectiveness ratio considering changes in discounted value of hedge instrument | 99.44% | 99.92% |
Cash flow [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Hedge effectiveness ratio | 100.00% | |
Hedge effectiveness ratio considering changes in discounted value of hedge instrument | 86.79% | 97.05% |
Derivative Financial Instrume_6
Derivative Financial Instruments - Summary of Fair Value of Derivative Financial Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Assets | |||
Current portion | $ 5.4 | $ 29.5 | $ 21 |
Non-current | 4.1 | 4.8 | 11.1 |
Liabilities | |||
Current portion | (8.1) | (8.8) | $ (8.4) |
Non-current | (0.1) | ||
Net derivative financial instruments | $ 1.4 | $ 25.4 |
Collateralized Accounts Recei_3
Collateralized Accounts Receivable and Recourse and Non-Recourse Debt - Summary of Collateralized Accounts Receivable (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Disclosure of Collateralized Accounts Receivable and Recourse and Non Recourse Debt [abstract] | |||
Estimated residual value of leased assets | $ 215.8 | $ 215.6 | |
Minimum lease payments receivable | 122.6 | 127.6 | |
Guaranteed operation (cash inflow) | 27 | 42.7 | |
Impairment | (129.5) | (97.2) | |
Investment in sales-type lease | 235.9 | 288.7 | |
Current portion | 218.5 | 185.6 | $ 142.8 |
Non-current portion | $ 17.4 | $ 103.1 | $ 180.5 |
Collateralized Accounts Recei_4
Collateralized Accounts Receivable and Recourse and Non-Recourse Debt - Summary of Amounts Classified as Non-Current Assets (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Disclosure of fair value measurement [line items] | |
Maturities of the amounts classified as non-current assets | $ 17.4 |
2019 [member] | |
Disclosure of fair value measurement [line items] | |
Maturities of the amounts classified as non-current assets | 3.7 |
2020 [member] | |
Disclosure of fair value measurement [line items] | |
Maturities of the amounts classified as non-current assets | 3.9 |
2021 [member] | |
Disclosure of fair value measurement [line items] | |
Maturities of the amounts classified as non-current assets | 4 |
2022 [member] | |
Disclosure of fair value measurement [line items] | |
Maturities of the amounts classified as non-current assets | 2.6 |
Thereafter 2022 [member] | |
Disclosure of fair value measurement [line items] | |
Maturities of the amounts classified as non-current assets | $ 3.2 |
Collateralized Accounts Recei_5
Collateralized Accounts Receivable and Recourse and Non-Recourse Debt - Summary of Recourse and Non-Recourse Debt (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Disclosure of detailed information about financial instruments [abstract] | |||
Recourse debt | $ 330.6 | $ 347 | |
Non recourse debt | 10.8 | 17.1 | |
Adjustments for decrease increase in non recourse and recourse debt | 341.4 | 364.1 | |
Current portion | 324 | 17.6 | $ 22.9 |
Non-current portion | $ 17.4 | $ 346.5 | $ 351 |
Collateralized Accounts Recei_6
Collateralized Accounts Receivable and Recourse and Non-Recourse Debt - Summary of Maturities of Amounts Classified as Non-Current Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Disclosure of fair value measurement [line items] | |||
Non-current liabilities | $ 17.4 | $ 346.5 | $ 351 |
2019 [member] | |||
Disclosure of fair value measurement [line items] | |||
Non-current liabilities | 3.7 | ||
2020 [member] | |||
Disclosure of fair value measurement [line items] | |||
Non-current liabilities | 3.9 | ||
2021 [member] | |||
Disclosure of fair value measurement [line items] | |||
Non-current liabilities | 4 | ||
2022 [member] | |||
Disclosure of fair value measurement [line items] | |||
Non-current liabilities | 2.6 | ||
Thereafter 2022 [member] | |||
Disclosure of fair value measurement [line items] | |||
Non-current liabilities | $ 3.2 |
Guarantee Deposits - Summary of
Guarantee Deposits - Summary of Guarantee Deposits (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Disclosure of guarantee deposits [line items] | |||
Guarantee Deposits | $ 349.7 | $ 393.9 | |
Current portion | 339.9 | 0.1 | |
Non-current | 9.8 | 393.8 | $ 511.4 |
Sales financing guarantees [member] | |||
Disclosure of guarantee deposits [line items] | |||
Guarantee Deposits | 314.4 | 321.4 | |
Sales structure guarantees [member] | |||
Disclosure of guarantee deposits [line items] | |||
Guarantee Deposits | 25.3 | 60.8 | |
Other guarantees [member] | |||
Disclosure of guarantee deposits [line items] | |||
Guarantee Deposits | $ 10 | $ 11.7 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Classes of current inventories [abstract] | |||||
Raw materials | $ 897.6 | $ 865.6 | |||
Work in process | 891.6 | 612.4 | |||
Spare parts | 424.3 | 405.2 | |||
Finished goods | 146.4 | 89.9 | |||
Held by third parties | 108.7 | 82.3 | |||
Inventory in transit | 91.1 | 85.2 | |||
Consumption materials | 48.3 | 47.6 | |||
Used aircraft | 46 | 102 | |||
Advances to suppliers | 31.4 | 28.9 | |||
Loss on adjustment to market value | (7.7) | (17.2) | |||
Loss due to obsolescence | (170.7) | (153.2) | $ (138.1) | $ (161.2) | |
Total | $ 2,507 | $ 2,148.7 | $ 2,496.4 |
Inventories - Summary of Inve_2
Inventories - Summary of Inventories (Parenthetical) (Detail) - Aircraft | Dec. 31, 2018 | Dec. 31, 2017 |
Legacy 450 [member] | ||
Disclosure of inventories [line items] | ||
Number of aircraft held in finished products inventory | 2 | 1 |
Number of aircraft held in inventory as available for sale | 1 | |
Lineage [member] | ||
Disclosure of inventories [line items] | ||
Number of aircraft held in finished products inventory | 1 | 1 |
Number of aircraft held in inventory as available for sale | 1 | 2 |
Phenom 300 [member] | ||
Disclosure of inventories [line items] | ||
Number of aircraft held in finished products inventory | 3 | 1 |
Number of aircraft held in inventory as available for sale | 1 | |
Aircraft E- R- J- One Four Zero [member] | ||
Disclosure of inventories [line items] | ||
Number of aircraft held in inventory as available for sale | 3 | |
Boeing BBJ 737 [member] | ||
Disclosure of inventories [line items] | ||
Number of aircraft held in inventory as available for sale | 1 | |
Legacy 500 [member] | ||
Disclosure of inventories [line items] | ||
Number of aircraft held in finished products inventory | 4 | 2 |
Phenom 100 [member] | ||
Disclosure of inventories [line items] | ||
Number of aircraft held in finished products inventory | 1 | 1 |
Ipanema [member] | ||
Disclosure of inventories [line items] | ||
Number of aircraft held in finished products inventory | 2 | 2 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - Events After Reporting Period [member] | Mar. 25, 2019Aircraft |
Ipanema [member] | |
Classes of inventories [line items] | |
Aircraft inventories | 1 |
Phenom 300 [member] | |
Classes of inventories [line items] | |
Aircraft inventories | 1 |
Inventories - Summary of Provis
Inventories - Summary of Provision Recorded for Adjustment to Realizable Value (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Inventory Provision Recorded for Adjustments to Realizable Value [line items] | |||
Beginning balance | $ 17.2 | ||
Ending balance | 7.7 | $ 17.2 | |
Aircraft [member] | |||
Reconciliation of Inventory Provision Recorded for Adjustments to Realizable Value [line items] | |||
Beginning balance | (17.2) | (19.9) | $ (25.4) |
Additions | (8.8) | (8.2) | (14) |
Disposals | 18.3 | 10.9 | 19.5 |
Ending balance | $ (7.7) | $ (17.2) | $ (19.9) |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories Provision for Obsolescence (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of inventories [abstract] | |||
Beginning balance | $ (153.2) | $ (138.1) | $ (161.2) |
Additions | (59.8) | (48.7) | (59.8) |
Disposals | 41.5 | 37 | 83.7 |
Foreign exchange loss | 0.8 | (3.4) | (0.8) |
Ending balance | $ (170.7) | $ (153.2) | $ (138.1) |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Disclosure Of Detailed Information About Other Assets [abstract] | |||
Taxes recoverable | $ 132.2 | $ 171 | |
Other debtors | 61.6 | 53.5 | |
Court-mandated escrow deposits | 43 | 62.5 | |
Prepaid expenses | 24.3 | 22.4 | |
Loan with a joint operation | 23.2 | 19.7 | |
Advances to employees | 8.5 | 12.5 | |
Advances for services to be rendered | 3.2 | 11.5 | |
Other | 13 | 23.7 | |
Total | 309 | 376.8 | |
Current portion | 203.4 | 255.3 | $ 349.7 |
Non-current portion | 105.6 | 121.5 | $ 156.9 |
ICMS (State Value-added Tax) and IPI (Excise Tax) | 85.5 | 96.3 | |
PIS (Social Integration Program) and COFINS (Contribution for Social Security) | 24.5 | 51.1 | |
Income tax and social security on net income withheld | 7.7 | 8.8 | |
ISS (Service tax) | 5.9 | 6.3 | |
Other | 8.6 | 8.5 | |
Total | 132.2 | 171 | |
Current portion | 93.7 | 120.4 | |
Non-current portion | $ 38.5 | $ 50.6 |
Interest in Entities - Summary
Interest in Entities - Summary of Subsidiaries with Participation of Non-Controlling Shareholders (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
OGMA - Industria Aeronautica de Portugal S.A. [member] | |
Disclosure of subsidiaries [line items] | |
Country | Portugal |
Participation Embraer Group | 65.00% |
Participation noncontrolling | 35.00% |
Embraer CAE Training Services Ltd [member] | |
Disclosure of subsidiaries [line items] | |
Country | United Kingdom |
Participation Embraer Group | 51.00% |
Participation noncontrolling | 49.00% |
Visiona Tecnologia Espacial S.A. [member] | |
Disclosure of subsidiaries [line items] | |
Country | Brazil |
Participation Embraer Group | 51.00% |
Participation noncontrolling | 49.00% |
Embraer CAE Training Services [member] | |
Disclosure of subsidiaries [line items] | |
Country | United States of America |
Participation Embraer Group | 51.00% |
Participation noncontrolling | 49.00% |
Interest in Entities - Addition
Interest in Entities - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 100.00% |
Proportion of profit before taxes by other entities | 5.00% |
Harbin Embraer Aircraft Industry Company Ltd [member] | |
Disclosure of subsidiaries [line items] | |
Participation Embraer Group | 51.00% |
Interest in Entities - Summar_2
Interest in Entities - Summary of Financial Position of the Group Entities that have Non-Controlling Interest (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2017 | Jan. 01, 2016 | Dec. 31, 2015 | |
Disclosure of subsidiaries [line items] | ||||||
Cash and cash equivalents | $ 1,280.9 | $ 1,270.8 | $ 1,241.5 | $ 1,241.5 | $ 2,165.5 | |
Current assets | 7,071 | 7,079.6 | 6,823.6 | 6,823.6 | $ 6,447.6 | |
Non current assets | 4,222.3 | 4,895 | 4,896.2 | 4,896.2 | 5,260.1 | |
Current liabilities | 3,028.6 | 2,803.2 | 3,227.9 | 3,227.8 | 3,147.4 | |
Non current liabilities | 4,324.6 | 4,993.9 | 4,555.5 | 4,555.6 | $ 4,741.2 | |
Noncontrolling interest | 94.4 | 113.4 | $ 92.4 | |||
REVENUE | 5,071.1 | 5,859.4 | 6,203.9 | |||
Net income for the year | (171.2) | 280 | 180.3 | |||
OGMA - Industria Aeronautica de Portugal S.A. [member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Cash and cash equivalents | 12.9 | 11.1 | 23.7 | |||
Current assets | 168.9 | 207.9 | 155.1 | |||
Non current assets | 61 | 66 | 55.4 | |||
Current liabilities | 74.5 | 117.4 | 76.5 | |||
Non current liabilities | 0.1 | 0.9 | 7.3 | |||
Noncontrolling interest | 54.3 | 54.4 | 44.2 | |||
REVENUE | 240.5 | 222.1 | 216.3 | |||
Net income for the year | $ 9.6 | $ 12.3 | $ 11.2 |
Interest in Entities - Summar_3
Interest in Entities - Summary of Net Assets and Liabilities of the Joint Operation (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2017 | Jan. 01, 2016 | Dec. 31, 2015 | |
Disclosure of subsidiaries [line items] | ||||||
Cash and cash equivalents | $ 1,280.9 | $ 1,270.8 | $ 1,241.5 | $ 1,241.5 | $ 2,165.5 | |
Current assets | 7,071 | 7,079.6 | 6,823.6 | 6,823.6 | $ 6,447.6 | |
Non current assets | 4,222.3 | 4,895 | 4,896.2 | 4,896.2 | 5,260.1 | |
Current liabilities | 3,028.6 | 2,803.2 | 3,227.9 | 3,227.8 | 3,147.4 | |
Non current liabilities | 4,324.6 | 4,993.9 | 4,555.5 | $ 4,555.6 | $ 4,741.2 | |
REVENUE | 5,071.1 | 5,859.4 | 6,203.9 | |||
Net income (loss) for the year | (171.2) | 280 | 180.3 | |||
Joint operations [member] | ||||||
Disclosure of subsidiaries [line items] | ||||||
Cash and cash equivalents | 1.3 | 1.2 | 1.4 | |||
Current assets | 24.5 | 28.8 | 27.7 | |||
Non current assets | 8 | 7.1 | 5.4 | |||
Current liabilities | 13.1 | 48.2 | 24.6 | |||
Non current liabilities | 41.5 | 4.4 | 25.4 | |||
REVENUE | 48.4 | 42 | 47.4 | |||
Net income (loss) for the year | $ (5.4) | $ 0.1 | $ (9.3) |
Related Parties - Summary of Ba
Related Parties - Summary of Balances and Transactions With Related Parties (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2017 | Jan. 01, 2016 | |
Disclosure of transactions between related parties [line items] | |||||
Current assets | $ 7,071 | $ 7,079.6 | $ 6,823.6 | $ 6,823.6 | $ 6,447.6 |
Current liabilities | 3,028.6 | 2,803.2 | 3,227.9 | 3,227.8 | 3,147.4 |
Non-current assets | 4,222.3 | 4,895 | 4,896.2 | 4,896.2 | 5,260.1 |
Non-current liabilities | 4,324.6 | 4,993.9 | 4,555.5 | $ 4,555.6 | $ 4,741.2 |
Financial results | (171.2) | 280 | 180.3 | ||
Operating results | 35.3 | 341.9 | 213.7 | ||
Related parties [member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | 369.4 | 557.7 | |||
Current liabilities | 493.9 | 298.6 | |||
Non-current assets | 9.4 | 330.8 | |||
Non-current liabilities | 163.2 | 603.1 | |||
Financial results | (14.6) | (18.1) | 4.2 | ||
Operating results | (203.2) | (54) | 2.6 | ||
Related parties [member] | Banco do Brasil S.A. [member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | 326.2 | 227.2 | |||
Current liabilities | 314.3 | 92.9 | |||
Non-current assets | 9.4 | 330.8 | |||
Non-current liabilities | 319.5 | ||||
Financial results | (4.2) | (0.5) | (2.8) | ||
Related parties [member] | Banco Nacional De Desenvolvimento Econmico e Social BNDES [member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current liabilities | 71.8 | 88.4 | |||
Non-current liabilities | 119.7 | 219 | |||
Financial results | (8.3) | (14.7) | (18.6) | ||
Related parties [member] | Brazilian Air force [member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | 42.3 | 314.1 | |||
Current liabilities | 90.3 | 90.3 | |||
Operating results | (176.2) | (23.7) | 25.6 | ||
Related parties [member] | Caixa Economica Federal [member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | 9.8 | ||||
Financial results | 0.2 | 28.5 | |||
Related parties [member] | Embraer Prev Sociedade De Previdncia Complementar [member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current liabilities | 0.2 | 0.2 | |||
Operating results | (14.4) | (22.9) | (23.2) | ||
Related parties [member] | Brazilian Army [member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current liabilities | 4.3 | 11.1 | |||
Operating results | (1.2) | 5 | |||
Related parties [member] | Financiadora De EstudoE Projetos FINEP [member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current liabilities | 13 | 15.7 | |||
Non-current liabilities | 43.5 | 64.6 | |||
Financial results | (2.3) | (2.9) | (2.9) | ||
Related parties [member] | Telecomunicacoes Brasileiras SA Telebras [member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Operating results | (2.1) | ||||
Related parties [member] | Marinha Do Brasil [member] | |||||
Disclosure of transactions between related parties [line items] | |||||
Current assets | 0.9 | 6.6 | |||
Operating results | $ (12.6) | $ (6.2) | $ (2.7) |
Related Parties - Additional In
Related Parties - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Brazilian development bank [member] | |
Disclosure of transactions between related parties [line items] | |
Percentage of shares owned by stakeholders | 5.37% |
Related Parties - Summary of Re
Related Parties - Summary of Remuneration of Key Management Personnel (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Remuneration Of Key Management Personnel [abstract] | ||
Short-term benefits | $ 10 | $ 10.1 |
Share based payment | 3.3 | 2.4 |
Labor contract termination | 1 | 1.1 |
Total | $ 14.3 | $ 13.6 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Weighted Average Rate (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Buildings and improvements [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Weighted average rate | 3.80% | 4.60% |
Installations [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Weighted average rate | 4.90% | 5.50% |
Machinery and equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Weighted average rate | 10.00% | 13.00% |
Furniture and fixtures [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Weighted average rate | 9.30% | 11.80% |
Vehicles [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Weighted average rate | 22.70% | 27.70% |
Aircraft [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Weighted average rate | 11.00% | 8.00% |
Computers and peripherals [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Weighted average rate | 27.60% | 28.20% |
Tooling [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Weighted average rate | 16.50% | 16.40% |
Other assets [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Weighted average rate | 0.10% | 0.70% |
Exchange pool program assets [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Weighted average rate | 3.70% | 3.80% |
Property, Plant and Equipment_2
Property, Plant and Equipment - Summary of Property Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | $ 2,104.9 | $ 2,154.2 | |
Impairment | (55.2) | (58.4) | |
Ending balance | 1,964.7 | 2,104.9 | $ 2,154.2 |
Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 3,757.8 | 3,724.2 | 3,461.5 |
Additions | 154.3 | 237.7 | 435.2 |
Disposals | (80.2) | (65.3) | (64.2) |
Impairment | (27) | ||
Reclassifications | (147.6) | (163.9) | (26.1) |
Interest on capitalized assets | 4.8 | 22.1 | 16.1 |
Translation adjustments | (25.5) | 33.1 | (6.4) |
Ending balance | 3,654.8 | 3,757.8 | 3,724.2 |
Gross carrying amount [member] | Republic airways [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Impairment | (8.8) | (30.1) | (64.9) |
Accumulated depreciation and amortisation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (1,652.9) | (1,570) | (1,434.1) |
Depreciation | (159.2) | (196.5) | (194.5) |
Disposals | 61.2 | 29.8 | 41.7 |
Reclassifications | 51.4 | 92.3 | 8.7 |
Interest on capitalized assets | (1.5) | ||
Translation adjustments | 10.9 | (8.5) | 8.2 |
Ending balance | (1,690.1) | (1,652.9) | (1,570) |
Land [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 11 | 11 | |
Ending balance | 11 | 11 | 11 |
Land [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 11 | 11 | 11 |
Ending balance | 11 | 11 | 11 |
Buildings and improvements [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 532.9 | 465.8 | |
Ending balance | 530.7 | 532.9 | 465.8 |
Buildings and improvements [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 741.8 | 657.1 | 616.5 |
Additions | 1.3 | 4.1 | 0.6 |
Disposals | (10.9) | (8.1) | (9.3) |
Reclassifications | 19.3 | 85.5 | 49.9 |
Translation adjustments | (1.4) | 3.2 | (0.6) |
Ending balance | 750.1 | 741.8 | 657.1 |
Buildings and improvements [member] | Accumulated depreciation and amortisation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (208.9) | (191.3) | (180.8) |
Depreciation | (20.2) | (21.3) | (20) |
Disposals | 10.7 | 4.1 | 9.2 |
Reclassifications | 0.1 | 0.6 | |
Interest on capitalized assets | (1.5) | ||
Translation adjustments | 0.4 | (1) | 0.3 |
Ending balance | (219.4) | (208.9) | (191.3) |
Installations [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 57.3 | 54.7 | |
Ending balance | 56.8 | 57.3 | 54.7 |
Installations [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 161.4 | 156.1 | 151.8 |
Disposals | (0.9) | (0.2) | |
Reclassifications | 2.1 | 4.8 | 4.4 |
Translation adjustments | (0.2) | 0.5 | 0.1 |
Ending balance | 162.4 | 161.4 | 156.1 |
Installations [member] | Accumulated depreciation and amortisation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (104.1) | (101.4) | (97.2) |
Depreciation | (2.8) | (3) | (4.2) |
Disposals | 0.9 | ||
Reclassifications | 0.3 | 0.4 | |
Translation adjustments | 0.1 | (0.1) | |
Ending balance | (105.6) | (104.1) | (101.4) |
Machinery and equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 465.2 | 464.7 | |
Ending balance | 454.3 | 465.2 | 464.7 |
Machinery and equipment [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 971.8 | 909.8 | 853.3 |
Additions | 28.5 | 40.3 | 54.8 |
Disposals | (36.5) | (10.1) | (7.6) |
Reclassifications | 8.8 | 22.5 | 10.2 |
Translation adjustments | 0.1 | 11.5 | (0.9) |
Ending balance | 972.4 | 971.8 | 909.8 |
Machinery and equipment [member] | Gross carrying amount [member] | Republic airways [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Impairment | (0.3) | (2.2) | |
Machinery and equipment [member] | Accumulated depreciation and amortisation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (506.6) | (445.1) | (389.5) |
Depreciation | (46.4) | (60.3) | (62.7) |
Disposals | 33.5 | 7.5 | 4.9 |
Reclassifications | 2.8 | 1.8 | |
Translation adjustments | (1.4) | (8.7) | 0.4 |
Ending balance | (518.1) | (506.6) | (445.1) |
Furniture and fixtures [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 31.5 | 34.1 | |
Ending balance | 29.6 | 31.5 | 34.1 |
Furniture and fixtures [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 74.9 | 74.1 | 70.5 |
Additions | 1.9 | 3.6 | 4 |
Disposals | (2.1) | (1.9) | (2.3) |
Reclassifications | (0.1) | (1.4) | 1.9 |
Translation adjustments | (0.4) | 0.5 | |
Ending balance | 74.2 | 74.9 | 74.1 |
Furniture and fixtures [member] | Accumulated depreciation and amortisation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (43.4) | (40) | (37.9) |
Depreciation | (2.9) | (4) | (4.1) |
Disposals | 1.5 | 1 | 1.9 |
Translation adjustments | 0.2 | (0.4) | 0.1 |
Ending balance | (44.6) | (43.4) | (40) |
Vehicles [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 4.1 | 4.1 | |
Ending balance | 3.5 | 4.1 | 4.1 |
Vehicles [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 17.5 | 16.8 | 17 |
Additions | 0.5 | 0.4 | 0.7 |
Disposals | (0.5) | (0.7) | (0.9) |
Reclassifications | 0.5 | 0.2 | |
Translation adjustments | (0.2) | 0.5 | (0.2) |
Ending balance | 17.3 | 17.5 | 16.8 |
Vehicles [member] | Accumulated depreciation and amortisation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (13.4) | (12.7) | (12.5) |
Depreciation | (1) | (1.2) | (1.1) |
Disposals | 0.4 | 0.6 | 0.8 |
Reclassifications | 0.3 | ||
Translation adjustments | 0.2 | (0.4) | 0.1 |
Ending balance | (13.8) | (13.4) | (12.7) |
Aircraft [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 111.9 | 162.8 | |
Ending balance | 37.5 | 111.9 | 162.8 |
Aircraft [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 193.2 | 316.7 | 323.5 |
Additions | 10.2 | 14.4 | 137.4 |
Disposals | (0.3) | (8.1) | (17.8) |
Impairment | (27) | ||
Reclassifications | (120.8) | (104) | (34.7) |
Translation adjustments | (0.1) | 0.2 | |
Ending balance | 76.2 | 193.2 | 316.7 |
Aircraft [member] | Gross carrying amount [member] | Republic airways [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Impairment | (6) | (25.8) | (64.9) |
Aircraft [member] | Accumulated depreciation and amortisation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (81.3) | (153.9) | (156.4) |
Depreciation | (9.1) | (25.6) | (25.4) |
Disposals | 0.3 | 6.9 | 15.5 |
Reclassifications | 51.4 | 91.3 | 8.6 |
Translation adjustments | 3.8 | ||
Ending balance | (38.7) | (81.3) | (153.9) |
Computers and peripherals [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 41.9 | 43.1 | |
Ending balance | 35.5 | 41.9 | 43.1 |
Computers and peripherals [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 190.3 | 179.3 | 163.2 |
Additions | 6.3 | 11.4 | 17.3 |
Disposals | (6.4) | (0.8) | (3) |
Reclassifications | 0.9 | (0.7) | 1.7 |
Translation adjustments | (1.1) | 1.1 | 0.1 |
Ending balance | 190 | 190.3 | 179.3 |
Computers and peripherals [member] | Accumulated depreciation and amortisation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (148.4) | (136.2) | (128.7) |
Depreciation | (11.5) | (12.1) | (10.4) |
Disposals | 6.3 | 0.6 | 2.9 |
Reclassifications | (1.7) | (0.1) | |
Translation adjustments | 0.8 | (0.7) | 0.1 |
Ending balance | (154.5) | (148.4) | (136.2) |
Tooling [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 291.2 | 308.9 | |
Ending balance | 257.6 | 291.2 | 308.9 |
Tooling [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 620.9 | 587.8 | 533.5 |
Additions | 16.6 | 30.8 | 54.6 |
Disposals | (1.7) | (1) | (0.9) |
Reclassifications | 0.5 | 5.1 | 0.9 |
Translation adjustments | (4.7) | 0.3 | (0.3) |
Ending balance | 629.1 | 620.9 | 587.8 |
Tooling [member] | Gross carrying amount [member] | Republic airways [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Impairment | (2.5) | (2.1) | |
Tooling [member] | Accumulated depreciation and amortisation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (329.7) | (278.9) | (233.4) |
Depreciation | (48.1) | (50.8) | (44.7) |
Disposals | 0.7 | 0.3 | 0.5 |
Reclassifications | (1.6) | ||
Translation adjustments | 5.6 | (0.3) | 0.3 |
Ending balance | (371.5) | (329.7) | (278.9) |
Other assets [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 16.1 | 20 | |
Ending balance | 16.2 | 16.1 | 20 |
Other assets [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 26 | 29.4 | 22.8 |
Additions | 1.4 | 8.6 | 8.6 |
Reclassifications | 0.2 | (12) | (2) |
Ending balance | 27.6 | 26 | 29.4 |
Other assets [member] | Accumulated depreciation and amortisation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (9.9) | (9.4) | (9.4) |
Depreciation | (0.2) | ||
Reclassifications | (1.5) | (0.3) | |
Ending balance | (11.4) | (9.9) | (9.4) |
Exchange pool program assets [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 465.3 | 468.6 | |
Ending balance | 438.3 | 465.3 | 468.6 |
Exchange pool program assets [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 672.5 | 669.7 | 622.6 |
Additions | 46.3 | 43.6 | 65.5 |
Disposals | (20.2) | (33.5) | (15.1) |
Reclassifications | (31.8) | (22.2) | 1.2 |
Translation adjustments | (16) | 14.9 | (4.5) |
Ending balance | 650.8 | 672.5 | 669.7 |
Exchange pool program assets [member] | Accumulated depreciation and amortisation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | (207.2) | (201.1) | (188.3) |
Depreciation | (17.2) | (18) | (21.9) |
Disposals | 6.9 | 8.8 | 6 |
Translation adjustments | 5 | 3.1 | 3.1 |
Ending balance | (212.5) | (207.2) | (201.1) |
Construction in progress [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 76.5 | 116.4 | |
Ending balance | 93.7 | 76.5 | 116.4 |
Construction in progress [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 76.5 | 116.4 | 75.8 |
Additions | 41.3 | 80.5 | 91.7 |
Disposals | (0.7) | (1.1) | (7.1) |
Reclassifications | (26.7) | (142) | (59.8) |
Interest on capitalized assets | 4.8 | 22.1 | 16.1 |
Translation adjustments | (1.5) | 0.6 | (0.3) |
Ending balance | $ 93.7 | $ 76.5 | $ 116.4 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [abstract] | ||
Pledged as collateral for loans, financing and labor contingencies | $ 114.5 | $ 134.1 |
Average rate for capitalization of borrowing costs | 5.50% | 5.40% |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets Internally Developed and Acquired From Third Party (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | $ 1,882.4 | $ 1,664.6 | $ 1,405.4 |
Ending balance | 1,898.8 | 1,882.4 | 1,664.6 |
Gross carrying amount [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 3,635 | 3,296.7 | 2,900.5 |
Additions | 290.3 | 470.5 | 505 |
Contributions from suppliers | (125.5) | (86) | (123.9) |
Disposals | (3.4) | (1.5) | |
Reclassifications | (6.1) | (7.3) | |
Impairment | (58.5) | (60.5) | |
Interest on capitalized assets | 10 | 15.8 | 17.8 |
Translation adjustments | (1.6) | 4.6 | |
Ending balance | 3,740.2 | 3,635 | 3,296.7 |
Accumulated amortization [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | (1,752.6) | (1,632.1) | (1,495.1) |
Amortization | (112.8) | (146.2) | (173.9) |
Amortization of contribution from suppliers | 22 | 27.3 | 38.3 |
Disposals | 2.2 | ||
Reclassifications | 1.4 | ||
Interest on capitalized assets | (1.6) | (1.6) | (1.4) |
Ending balance | (1,841.4) | (1,752.6) | (1,632.1) |
Internally generated [member] | Commercial [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 793.4 | 522.7 | 352.5 |
Ending balance | 862.7 | 793.4 | 522.7 |
Internally generated [member] | Commercial [member] | Gross carrying amount [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 1,825.2 | 1,515.1 | 1,276.1 |
Additions | 209.3 | 313.8 | 351.1 |
Contributions from suppliers | (125.5) | (86) | (123.9) |
Reclassifications | 71.3 | ||
Interest on capitalized assets | 7.3 | 11 | 11.8 |
Ending balance | 1,916.3 | 1,825.2 | 1,515.1 |
Internally generated [member] | Commercial [member] | Accumulated amortization [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | (1,031.8) | (992.4) | (923.6) |
Amortization | (29.6) | (57.4) | (92) |
Amortization of contribution from suppliers | 8 | 13.5 | 23.2 |
Reclassifications | 4.5 | ||
Interest on capitalized assets | (0.2) | ||
Ending balance | (1,053.6) | (1,031.8) | (992.4) |
Internally generated [member] | Executive [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 882 | 895.4 | 871.8 |
Ending balance | 829 | 882 | 895.4 |
Internally generated [member] | Executive [member] | Gross carrying amount [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 1,355.7 | 1,320.3 | 1,248.9 |
Additions | 41.3 | 76.9 | 65.4 |
Reclassifications | 3.6 | ||
Impairment | (58.5) | (49.9) | |
Interest on capitalized assets | 2.7 | 4.8 | 6 |
Ending balance | 1,341.2 | 1,355.7 | 1,320.3 |
Internally generated [member] | Executive [member] | Accumulated amortization [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | (473.7) | (424.9) | (377.1) |
Amortization | (51.1) | (56.7) | (61.5) |
Amortization of contribution from suppliers | 14 | 13.8 | 15.1 |
Reclassifications | (4.3) | ||
Interest on capitalized assets | (1.4) | (1.6) | (1.4) |
Ending balance | (512.2) | (473.7) | (424.9) |
Internally generated [member] | Defense and Security [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 5.6 | 5.2 | |
Ending balance | 11 | 5.6 | 5.2 |
Internally generated [member] | Defense and Security [member] | Gross carrying amount [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 33.5 | 30.8 | 25.6 |
Additions | 4 | 3 | 5.2 |
Reclassifications | 5.9 | (0.3) | |
Ending balance | 43.4 | 33.5 | 30.8 |
Internally generated [member] | Defense and Security [member] | Accumulated amortization [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | (27.9) | (25.6) | (25.6) |
Amortization | (1.8) | (2.6) | |
Reclassifications | (2.7) | 0.3 | |
Ending balance | (32.4) | (27.9) | (25.6) |
Internally generated [member] | All Other Segments [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 4.7 | 51.8 | 36.1 |
Ending balance | 2.3 | 4.7 | 51.8 |
Internally generated [member] | All Other Segments [member] | Gross carrying amount [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 5.8 | 51.8 | 36.1 |
Additions | 0.1 | 2.5 | 15.7 |
Reclassifications | (2.4) | (48.5) | |
Ending balance | 3.5 | 5.8 | 51.8 |
Internally generated [member] | All Other Segments [member] | Accumulated amortization [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | (1.1) | ||
Amortization | (0.1) | (0.1) | |
Reclassifications | (1) | ||
Ending balance | (1.2) | (1.1) | |
Not internally generated [member] | Development [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 7.1 | 7.8 | 5.5 |
Ending balance | 3.4 | 7.1 | 7.8 |
Not internally generated [member] | Development [member] | Gross carrying amount [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 13.9 | 13.5 | 10.1 |
Additions | 2.5 | 1.9 | 10.7 |
Disposals | (1.5) | ||
Reclassifications | (10.1) | (7.3) | |
Ending balance | 6.3 | 13.9 | 13.5 |
Not internally generated [member] | Development [member] | Accumulated amortization [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | (6.8) | (5.7) | (4.6) |
Amortization | (0.9) | (1.1) | (1.1) |
Reclassifications | 4.8 | ||
Ending balance | (2.9) | (6.8) | (5.7) |
Not internally generated [member] | Computer software [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 136.4 | 131.6 | 102.4 |
Ending balance | 117.5 | 136.4 | 131.6 |
Not internally generated [member] | Computer software [member] | Gross carrying amount [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 343.3 | 311.4 | 263.3 |
Additions | 8 | 56.3 | 48.1 |
Disposals | (3.4) | ||
Reclassifications | 2.4 | (24.4) | |
Ending balance | 350.3 | 343.3 | 311.4 |
Not internally generated [member] | Computer software [member] | Accumulated amortization [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | (206.9) | (179.8) | (160.9) |
Amortization | (28.1) | (27.1) | (18.9) |
Disposals | 2.2 | ||
Ending balance | (232.8) | (206.9) | (179.8) |
Not internally generated [member] | Goodwill [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 12 | 21 | 16.4 |
Ending balance | 10.4 | 12 | 21 |
Not internally generated [member] | Goodwill [member] | Gross carrying amount [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 12 | 21 | 16.4 |
Impairment | (8.7) | ||
Translation adjustments | (1.6) | (0.3) | 4.6 |
Ending balance | 10.4 | 12 | 21 |
Not internally generated [member] | Other intangible assets [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 41.2 | 29.1 | 20.7 |
Ending balance | 62.5 | 41.2 | 29.1 |
Not internally generated [member] | Other intangible assets [member] | Gross carrying amount [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | 45.6 | 32.8 | 24 |
Additions | 25.1 | 16.1 | 8.8 |
Reclassifications | (1.9) | (1.7) | |
Impairment | (1.9) | ||
Translation adjustments | 0.3 | ||
Ending balance | 68.8 | 45.6 | 32.8 |
Not internally generated [member] | Other intangible assets [member] | Accumulated amortization [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning balance | (4.4) | (3.7) | (3.3) |
Amortization | (1.2) | (1.2) | (0.4) |
Reclassifications | (0.7) | 0.5 | |
Ending balance | $ (6.3) | $ (4.4) | $ (3.7) |
Impairment Test - Additional In
Impairment Test - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Impairment test [line items] | ||
Estimated future cash flows pretax discount rate | 11.40% | 11.90% |
Monitoring sensoring and radars CGU [member] | ||
Impairment test [line items] | ||
Impairment losses | $ 8.7 | |
Legacy 650 [member] | ||
Impairment test [line items] | ||
Impairment losses | $ 50.5 | |
Lineage [member] | ||
Impairment test [line items] | ||
Impairment losses | $ 61.3 | |
Lineage [member] | Intangible assets [member] | ||
Impairment test [line items] | ||
Impairment losses | 58.5 | |
Lineage [member] | Property, plant and equipment [member] | ||
Impairment test [line items] | ||
Impairment losses | $ 2.8 |
Trade Accounts Payable - Summar
Trade Accounts Payable - Summary of Trade Accounts Payable (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Trade and other payables [abstract] | ||
Foreign suppliers | $ 574 | $ 545.4 |
Risk partners | 200.2 | 162 |
Domestic suppliers | 117.9 | 117.3 |
Trade accounts payable | $ 892.1 | $ 824.7 |
Loans and Financing - Summary o
Loans and Financing - Summary of Loans and Financing (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about loans and financing [line items] | |||||
Loans and financing | $ 3,647,600 | $ 4,198,500 | $ 3,759,900 | $ 3,759,900 | $ 4,229,900 |
Current portion | 179,300 | 388,900 | 510,300 | ||
Non-current portion | 3,468,400 | 3,809,600 | $ 3,249,600 | ||
Local currency [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Loans and financing | $ 286,500 | 629,100 | |||
2027 [member] | Working capital [member] | Other currencies [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings, maturity | 2027 | ||||
2027 [member] | Working capital two [member] | London inter bank offered rate one [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Contractual interest rate | Libor 6M + 1.35% to 2.60% | ||||
Effective interest rate | Libor 6M + 1.35% to 2.60 | ||||
2027 [member] | Working capital two [member] | Other currencies [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings, maturity | 2027 | ||||
Loans and financing | $ 219,800 | 119,100 | |||
2027 [member] | Bottom of range [member] | Working capital [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings contractual interest rate | 5.05% | ||||
Borrowing effective interest rate | 5.05% | ||||
2027 [member] | Bottom of range [member] | Working capital two [member] | London inter bank offered rate one [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings contractual interest rate | 1.35% | ||||
Borrowing effective interest rate | 1.35% | ||||
2027 [member] | Top of range [member] | Working capital [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings contractual interest rate | 6.38% | ||||
Borrowing effective interest rate | 6.38% | ||||
2027 [member] | Top of range [member] | Working capital [member] | Other currencies [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings, maturity | 2027 | ||||
Loans and financing | $ 2,941,800 | 2,934,100 | |||
2027 [member] | Top of range [member] | Working capital two [member] | London inter bank offered rate one [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings contractual interest rate | 2.60% | ||||
Borrowing effective interest rate | 2.60% | ||||
Two thousand twenty one [member] | Working capital one [member] | Other currencies [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings, maturity | 2021 | ||||
Two thousand twenty one [member] | Bottom of range [member] | Working capital one [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings contractual interest rate | 0.63% | ||||
Borrowing effective interest rate | 0.63% | ||||
Two thousand twenty one [member] | Top of range [member] | Working capital one [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings contractual interest rate | 5.37% | ||||
Borrowing effective interest rate | 5.37% | ||||
Two thousand twenty one [member] | Top of range [member] | Working capital one [member] | Other currencies [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings, maturity | 2021 | ||||
Loans and financing | $ 124,100 | 220,600 | |||
2026 [member] | Working capital [member] | Other currencies [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings, maturity | 2026 | ||||
2026 [member] | Working capital two [member] | London inter bank offered rate one [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Contractual interest rate | Libor 3M + 2.25% | ||||
Borrowings contractual interest rate | 2.25% | ||||
Effective interest rate | Libor 3M + 2.25% | ||||
Borrowing effective interest rate | 2.25% | ||||
2026 [member] | Working capital two [member] | Other currencies [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings, maturity | 2026 | ||||
2026 [member] | Bottom of range [member] | Working capital [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings contractual interest rate | 1.00% | ||||
Borrowing effective interest rate | 1.00% | ||||
2026 [member] | Top of range [member] | Working capital [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings contractual interest rate | 3.37% | ||||
Borrowing effective interest rate | 3.37% | ||||
2026 [member] | Top of range [member] | Working capital [member] | Other currencies [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings, maturity | 2026 | ||||
Loans and financing | $ 19,600 | 14,000 | |||
2026 [member] | Top of range [member] | Working capital two [member] | Other currencies [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings, maturity | 2026 | ||||
Loans and financing | 220,200 | ||||
2018 [member] | Advances on foreign exchange contracts [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings contractual interest rate | 4.65% | ||||
Borrowing effective interest rate | 4.65% | ||||
2018 [member] | Advances on foreign exchange contracts [member] | Other currencies [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings, maturity | 2018 | ||||
Loans and financing | 3,100 | ||||
2035 [member] | Property, plant and equipment [member] | Other currencies [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings, maturity | 2035 | ||||
2035 [member] | Bottom of range [member] | Property, plant and equipment [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings contractual interest rate | 1.04% | ||||
Borrowing effective interest rate | 1.04% | ||||
2035 [member] | Top of range [member] | Property, plant and equipment [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings contractual interest rate | 1.10% | ||||
Borrowing effective interest rate | 1.10% | ||||
2035 [member] | Top of range [member] | Property, plant and equipment [member] | Advances on foreign exchange contracts [member] | Other currencies [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings, maturity | 2035 | ||||
Loans and financing | $ 55,800 | 58,100 | |||
2037 [member] | Finance leasing [member] | London inter bank offered rate one [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Contractual interest rate | Libor 1M + 2.44% to 2.50% | ||||
Effective interest rate | Libor 1M + 2.44% to 2.50% | ||||
2037 [member] | Finance leasing [member] | Other currencies [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings, maturity | 2037 | ||||
Loans and financing | $ 3,361,100 | 3,569,200 | |||
2037 [member] | Bottom of range [member] | Finance leasing [member] | London inter bank offered rate one [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings contractual interest rate | 2.44% | ||||
Borrowing effective interest rate | 2.44% | ||||
2037 [member] | Top of range [member] | Finance leasing [member] | London inter bank offered rate one [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings contractual interest rate | 2.50% | ||||
Borrowing effective interest rate | 2.50% | ||||
2023 [member] | Project development [member] | Local currency [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings, maturity | 2023 | ||||
2023 [member] | Bottom of range [member] | Project development [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings contractual interest rate | 3.50% | ||||
Borrowing effective interest rate | 3.50% | ||||
2023 [member] | Top of range [member] | Project development [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings contractual interest rate | 4.50% | ||||
Borrowing effective interest rate | 4.50% | ||||
2023 [member] | Top of range [member] | Project development [member] | Local currency [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings, maturity | 2023 | ||||
Loans and financing | $ 248,000 | 396,000 | |||
2022 [member] | Project development [member] | Local currency [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings, maturity | 2022 | ||||
2022 [member] | Export Credit Note [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Contractual interest rate | TJLP + 1.92% to 5.00 | ||||
2022 [member] | Bottom of range [member] | Export Credit Note [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings contractual interest rate | 1.92% | ||||
Borrowing effective interest rate | 1.92% | ||||
2022 [member] | Top of range [member] | Export Credit Note [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings contractual interest rate | 5.00% | ||||
Borrowing effective interest rate | 5.00% | ||||
2022 [member] | Top of range [member] | Export Credit Note [member] | Local currency [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings, maturity | 2022 | ||||
2019 [member] | Export Credit Note [member] | Local currency [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings, maturity | 2019 | ||||
2019 [member] | Bottom of range [member] | Export Credit Note [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings contractual interest rate | 10.85% | ||||
Borrowing effective interest rate | 10.85% | ||||
2019 [member] | Top of range [member] | Export Credit Note [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings contractual interest rate | 11.00% | ||||
Borrowing effective interest rate | 11.00% | ||||
2019 [member] | Top of range [member] | Export Credit Note [member] | Local currency [member] | |||||
Disclosure of detailed information about loans and financing [line items] | |||||
Borrowings, maturity | 2019 | ||||
Loans and financing | $ 38,500 | $ 233,100 |
Loans and Financing - Additiona
Loans and Financing - Additional Information (Detail) - USD ($) | Jun. 15, 2012 | Feb. 28, 2017 | Jun. 30, 2015 | Oct. 31, 2009 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about loans and financing [line items] | ||||||
Assets pledged and bank guarantees as collateral for loans | $ 339,400,000 | $ 441,100,000 | ||||
U.S. dollar [member] | ||||||
Disclosure of detailed information about loans and financing [line items] | ||||||
Proportion of loans denominated in foreign currency subject to fixed interest rate | 91.60% | |||||
Weighted average interest rate | 5.27% | 5.18% | ||||
Brazilian Real [member] | ||||||
Disclosure of detailed information about loans and financing [line items] | ||||||
Proportion of loans denominated in foreign currency subject to fixed interest rate | 7.90% | |||||
Weighted average interest rate | 2.47% | 3.72% | ||||
Euro [member] | ||||||
Disclosure of detailed information about loans and financing [line items] | ||||||
Proportion of loans denominated in foreign currency subject to fixed interest rate | 0.50% | |||||
Weighted average interest rate | 1.32% | |||||
Embraer S.A [member] | ||||||
Disclosure of detailed information about loans and financing [line items] | ||||||
Guaranteed notes issued | $ 500,000,000 | |||||
Borrowing interest rate | 5.15% | |||||
Borrowings, maturity date | June 15, 2022 | |||||
Existing Notes [member] | ||||||
Disclosure of detailed information about loans and financing [line items] | ||||||
Description of exchange of existing bonds | Between August and September 2013, through its subsidiary Embraer Overseas Limited, Embraer S.A. made an offer to exchange existing bonds maturing in 2017 (settled in January 2017) and 2020 for “New Notes” maturing in 2023. | |||||
Aggregate principal amount of notes exchange | $ 146,400,000 | |||||
6.375% p.a., due on January 15, 2020 [member] | ||||||
Disclosure of detailed information about loans and financing [line items] | ||||||
Aggregate principal amount of notes exchange | $ 337,200,000 | |||||
Percentage of aggregate principal notes exchange | 54.95% | |||||
6.375% p.a., due on January 15, 2020 [member] | Embraer Overseas Ltd. [member] | ||||||
Disclosure of detailed information about loans and financing [line items] | ||||||
Guaranteed notes issued | $ 500,000 | |||||
Borrowing interest rate | 6.375% | |||||
5.696%, maturing on September 16, 2023 [member] | ||||||
Disclosure of detailed information about loans and financing [line items] | ||||||
Guaranteed notes issued | $ 540,500,000 | |||||
Borrowing interest rate | 5.696% | |||||
Borrowings, maturity date | September 16, 2023 | |||||
5.05% p.a., due on June 15, 2025 [member] | Embraer Netherlands Finance BV [member] | ||||||
Disclosure of detailed information about loans and financing [line items] | ||||||
Guaranteed notes issued | $ 1,000,000,000 | |||||
Borrowing interest rate | 5.05% | |||||
5.40% p.a., due on February 01, 2027 [member] | Embraer Netherlands Finance BV [member] | ||||||
Disclosure of detailed information about loans and financing [line items] | ||||||
Guaranteed notes issued | $ 750,000,000 | |||||
Borrowing interest rate | 5.40% | |||||
Borrowings, maturity date | February 1, 2017 |
Loans and Financing - Summary_2
Loans and Financing - Summary of Maturities of Long term Financing Agreements (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2017 | |
Disclosure of detailed information about loans and financing [line items] | ||||
Opening balance | $ 4,198.5 | $ 3,759.9 | $ 4,229.9 | |
Principal addition | 124 | 940 | 620.5 | |
Interest addition | 218 | 192.7 | 195.7 | |
Principal payment | (596.3) | (521.3) | (559.7) | |
Interest payment | (212.7) | (186.4) | (175) | |
Foreing exchange | 530.2 | 68.9 | (551.5) | |
Ending balance | 3,647.6 | 4,198.5 | $ 3,759.9 | |
Maturities of the long-term financing agreements | 3,468.4 | $ 3,809.6 | $ 3,249.6 | |
2020 [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Maturities of the long-term financing agreements | 237 | |||
2021 [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Maturities of the long-term financing agreements | 287.5 | |||
2022 [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Maturities of the long-term financing agreements | 519.5 | |||
2023 [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Maturities of the long-term financing agreements | 520.8 | |||
After 2023 [member] | ||||
Disclosure of detailed information about loans and financing [line items] | ||||
Maturities of the long-term financing agreements | $ 1,903.6 |
Other Payables - Schedule of Ot
Other Payables - Schedule of Other Payables (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Disclosure of other payables [abstract] | |||
Other accounts payable | $ 114.6 | $ 112 | |
Provisions related to payroll | 92.8 | 108.6 | |
Provision for employee profit sharing | 34.3 | 29.8 | |
Mutual with jointly controlled operation | 23.2 | 19.7 | |
Contractual obligations | 17.5 | 16.9 | |
Long-term incentive | 16.9 | 9.9 | |
Commission payable | 10.9 | 10.6 | |
Insurance | 6.2 | 5 | |
Brazilian air force | 0.6 | 1.2 | |
Other payables | 317 | 313.7 | |
Current portion | 288.4 | 292.2 | $ 379.5 |
Non-current portion | $ 28.6 | $ 21.5 | $ 16.9 |
Taxes and Payroll Charges Pay_3
Taxes and Payroll Charges Payable - Schedule of Taxes and Payroll Charges Payable (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Disclosure Of Taxes And Payroll Charges [abstract] | |||
INSS (social security contribution) | $ 105.2 | $ 84 | |
IRRF (withholding tax) | 11.8 | 24.2 | |
PIS and COFINS | 1.6 | 4.2 | |
Taxes refinancing program | 1.1 | 15 | |
IPI (manufacturing tax) | 0.3 | 1.1 | |
FGTS (government employee severance indemnity fund) | 0.2 | 5.6 | |
Others | 6.4 | 6.8 | |
Total | 126.6 | 140.9 | |
Current portion | 68.4 | 70.7 | $ 43.6 |
Non-current portion | $ 58.2 | $ 70.2 | $ 67.9 |
Taxes and Payroll Charges Pay_4
Taxes and Payroll Charges Payable - Schedule of Taxes and Payroll Charges Payable (Parenthetical) (Detail) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Taxes And Payroll Charges [abstract] | |||
Amount related to accident insurance | $ 47.7 | $ 54.6 | |
Reduction on provisions payable on social security | $ 2.5 | ||
Remaining amount of provisions payable on social security | 10 | 11.4 | |
Amount of injunction guaranteeing right to not collect social security contributions | $ 31.6 | ||
Amount involved in suit due to inclusion of the foreign exchange variation | $ 3.3 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of income taxes [line items] | ||||
Differences between basis: account x tax | $ 5.1 | $ 10.8 | $ (28.4) | |
Deferred tax assets (liabilities), net | 232.4 | 244.6 | 253.6 | $ 397.4 |
Components of deferred tax assets and liabilities [Member] | ||||
Disclosure of income taxes [line items] | ||||
Temporarily non-deductibleprovisions | 39.7 | (76.1) | (102.7) | |
Tax loss carryforwards | 0.5 | 4.5 | 28.3 | |
Functional currency effect of the non monetary assets | (323.4) | (206) | (201) | |
Gains not realized from sales of the Company to subsidiairies | 22.7 | 15.4 | 16.4 | |
Effect of differences by fixed asset | 7.5 | (8.1) | (31.2) | |
Differences between basis: account x tax | 20.6 | 25.7 | 36.6 | |
Deferred tax assets (liabilities), net | (232.4) | (244.6) | (253.6) | |
Total deferred tax asset | 21.6 | 13.4 | 11.6 | |
Total deferred tax liability | $ (254) | $ (258) | $ (265.2) |
Income Taxes - Changes in Defer
Income Taxes - Changes in Deferred Income Tax (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of income taxes [line items] | |||
Beginning balance | $ (244.6) | $ (253.6) | $ (397.4) |
Temporarily non-deductible provisions | 115.8 | 26.6 | (99.9) |
Tax loss carryforwards | (4) | (23.8) | 7.8 |
Functional currency effect of the non monetary assets | (117.4) | (5) | 206.1 |
Gains not realized from sales of Parent Company to subsidiairies | 7.3 | (1) | (3.5) |
Effect of differences by fixed asset | 15.6 | 23 | 4.9 |
Differences between basis: account x tax | (5.1) | (10.8) | 28.4 |
Ending balance | (232.4) | (244.6) | (253.6) |
From the statement of income [member] | |||
Disclosure of income taxes [line items] | |||
Beginning balance | (279.5) | (292.4) | (429.9) |
Temporarily non-deductible provisions | 115.8 | 26.6 | (99.9) |
Tax loss carryforwards | (4) | (23.8) | 7.8 |
Functional currency effect of the non monetary assets | (117.4) | (5) | 206.1 |
Gains not realized from sales of Parent Company to subsidiairies | 7.3 | (1) | (3.5) |
Effect of differences by fixed asset | 15.6 | 23 | 4.9 |
Differences between basis: account x tax | 3.9 | (6.9) | 22.1 |
Ending balance | (258.3) | (279.5) | (292.4) |
Other comprehensive income [member] | |||
Disclosure of income taxes [line items] | |||
Beginning balance | 34.9 | 38.8 | 32.5 |
Differences between basis: account x tax | (9) | (3.9) | 6.3 |
Ending balance | $ 25.9 | $ 34.9 | $ 38.8 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of income tax reconciliation [abstract] | |||
Profit (loss) before taxation | $ (136.2) | $ 307.9 | $ 180.6 |
Income tax and social contribution expense at the nominal Brazilian enacted tax rate - 34% | 46.3 | (104.7) | (61.4) |
Tax on profits of overseas subsidiaries | (33.2) | (9.8) | (4) |
Functional currency effect of the non monetary assets | (117.4) | (5) | 206.1 |
Research and development tax incentives | 27.7 | 43.8 | 36.5 |
Interest on own capital | 3 | 16.9 | 6.1 |
Fiscal credits (recognized and non recognized) | (26) | 19.3 | (30.4) |
Tax rate diference | 30.9 | 5.3 | (0.7) |
Other difference between IFRS and fiscal basis | 41.4 | 3.3 | (90.9) |
Other | (7.7) | 3 | (61.6) |
Total income tax expense | (81.3) | 76.8 | 61.1 |
Income tax and social contribution income (expense) benefit as reported | (35) | (27.9) | (0.3) |
Current income tax and social contribution (expense) benefit as reported | (56.2) | (40.8) | (137.8) |
Deferred income tax and social contribution income (expense) benefit as reported | $ 21.2 | $ 12.9 | $ 137.5 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Income Tax Expense (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of income tax reconciliation [abstract] | |||
Income tax and social contribution tax rate | 34.00% | 34.00% | 34.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [abstract] | ||
Effective tax rate | 25.70% | 9.10% |
Financial Guarantees and Resi_3
Financial Guarantees and Residual Value Guarantees - Schedule of Financial Guarantees and Residual Guarantees (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of financial guarantees and residual guarantees [line items] | ||||
Financial guarantees and residual value guarantees | $ 152.1 | $ 156.8 | $ 210.8 | $ 293.1 |
Current portion | 51 | 22.2 | ||
Non-current portion | 101.1 | 134.6 | ||
Financial guarantee of residual value [member] | ||||
Disclosure of financial guarantees and residual guarantees [line items] | ||||
Financial guarantees and residual value guarantees | 125.4 | 108.9 | 122.2 | 94.7 |
Accounts payable [member] | ||||
Disclosure of financial guarantees and residual guarantees [line items] | ||||
Financial guarantees and residual value guarantees | 15.1 | 30.8 | 65.9 | 57.4 |
Financial guarantee [member] | ||||
Disclosure of financial guarantees and residual guarantees [line items] | ||||
Financial guarantees and residual value guarantees | $ 11.6 | $ 17.1 | $ 22.7 | $ 40.1 |
Financial Guarantees and Resi_4
Financial Guarantees and Residual Value Guarantees - Activity on Financial Guarantees and Residual Guarantees (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure activity on financial guarantees and residual guarantees [line items] | |||
Beginning balance | $ 156.8 | $ 210.8 | $ 293.1 |
Additions | 4.9 | 12 | |
Interest Additions | 1.5 | 2 | 1.7 |
Disposals | (17.2) | (40.8) | (102.2) |
Reversals | (10.4) | ||
Market value | 16.5 | (13.3) | 27.5 |
Guarantee amortization | (5.5) | (6.8) | (10.9) |
Ending balance | 152.1 | 156.8 | 210.8 |
Financial guarantee [member] | |||
Disclosure activity on financial guarantees and residual guarantees [line items] | |||
Beginning balance | 17.1 | 22.7 | 40.1 |
Additions | 1.2 | 0.1 | |
Disposals | (6.6) | ||
Guarantee amortization | (5.5) | (6.8) | (10.9) |
Ending balance | 11.6 | 17.1 | 22.7 |
Financial guarantee of residual value [member] | |||
Disclosure activity on financial guarantees and residual guarantees [line items] | |||
Beginning balance | 108.9 | 122.2 | 94.7 |
Market value | 16.5 | (13.3) | 27.5 |
Ending balance | 125.4 | 108.9 | 122.2 |
Accounts payable [member] | |||
Disclosure activity on financial guarantees and residual guarantees [line items] | |||
Beginning balance | 30.8 | 65.9 | 57.4 |
Additions | 3.7 | 11.9 | |
Interest Additions | 1.5 | 2 | 1.7 |
Disposals | (17.2) | (40.8) | (95.6) |
Reclassifications | 90.5 | ||
Ending balance | $ 15.1 | $ 30.8 | 65.9 |
Additional provision [member] | |||
Disclosure activity on financial guarantees and residual guarantees [line items] | |||
Beginning balance | 100.9 | ||
Reversals | (10.4) | ||
Reclassifications | $ (90.5) |
Provisions and Contingent Lia_3
Provisions and Contingent Liabilities - Summary of Provision (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2016 | Jan. 01, 2016 |
Disclosure of provisions [line items] | |||||
Provision | $ 242.4 | $ 260.3 | $ 302.8 | ||
Current portion | 116.9 | 124.1 | $ 123.8 | 123.9 | $ 89.7 |
Non-current portion | 125.5 | 136.2 | $ 179 | 179 | |
Product warranties [member] | |||||
Disclosure of provisions [line items] | |||||
Provision | 98 | 101.1 | 94.1 | ||
Provisions labor, taxes and civil [member] | |||||
Disclosure of provisions [line items] | |||||
Provision | 58.4 | 54.2 | 93.1 | ||
Current portion | 20.7 | 21.5 | |||
Non-current portion | 37.7 | 32.7 | |||
Taxes [member] | |||||
Disclosure of provisions [line items] | |||||
Provision | 31.4 | 41.8 | 28.5 | ||
Post retirement benefits [member] | |||||
Disclosure of provisions [line items] | |||||
Provision | 31.7 | 36.1 | 46 | ||
Other environment related provision [member] | |||||
Disclosure of provisions [line items] | |||||
Provision | 2.4 | 1.8 | 1 | ||
Voluntary redundancy scheme [member] | |||||
Disclosure of provisions [line items] | |||||
Provision | 25.3 | ||||
Other [member] | |||||
Disclosure of provisions [line items] | |||||
Provision | $ 20.5 | $ 25.3 | $ 14.8 |
Provisions and Contingent Lia_4
Provisions and Contingent Liabilities - Summary of Change in Provision (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of provisions [line items] | |||
Beginning balance | $ 260,300 | $ 302,800 | $ 198,700 |
Additions | 74,100 | 89,500 | 254,400 |
Interest | 8,000 | 16,900 | 7,600 |
Used/payments | (45,800) | (134,200) | (119,500) |
Reversals | (29,200) | (15,500) | (43,100) |
Translation adjustments | (25,000) | 800 | 4,700 |
Ending balance | 242,400 | 260,300 | 302,800 |
Product warranties [member] | |||
Disclosure of provisions [line items] | |||
Beginning balance | 101,100 | 94,100 | 95,700 |
Additions | 38,100 | 42,500 | 51,900 |
Used/payments | (24,900) | (26,800) | (31,700) |
Reversals | (16,200) | (8,800) | (20,600) |
Translation adjustments | (100) | 100 | (1,200) |
Ending balance | 98,000 | 101,100 | 94,100 |
Post retirement benefits [member] | |||
Disclosure of provisions [line items] | |||
Beginning balance | 54,200 | 93,100 | 49,900 |
Additions | 24,600 | 12,700 | 43,300 |
Interest | 5,100 | 12,500 | 4,300 |
Used/payments | (6,400) | (61,100) | (2,700) |
Reversals | (11,800) | (2,300) | (5,500) |
Translation adjustments | (7,300) | (700) | 3,800 |
Ending balance | 58,400 | 54,200 | 93,100 |
Provisions labor, taxes and civil [member] | |||
Disclosure of provisions [line items] | |||
Beginning balance | 36,100 | 46,000 | 26,800 |
Additions | 600 | 3,200 | 11,200 |
Interest | 2,900 | 4,400 | 3,300 |
Used/payments | (3,300) | (15,300) | |
Reversals | (200) | (1,400) | |
Translation adjustments | (4,400) | (800) | 4,700 |
Ending balance | 31,700 | 36,100 | 46,000 |
Taxes [member] | |||
Disclosure of provisions [line items] | |||
Beginning balance | 41,800 | 28,500 | 16,900 |
Additions | 800 | 14,000 | 12,000 |
Used/payments | (11,200) | ||
Translation adjustments | (700) | (400) | |
Ending balance | 31,400 | 41,800 | 28,500 |
Other environment related provision [member] | |||
Disclosure of provisions [line items] | |||
Beginning balance | 25,300 | ||
Additions | 7,000 | 118,000 | |
Used/payments | (31,000) | (77,000) | |
Reversals | (1,000) | (15,000) | |
Translation adjustments | (300) | (700) | |
Ending balance | 25,300 | ||
Voluntary redundancy scheme [member] | |||
Disclosure of provisions [line items] | |||
Beginning balance | 1,800 | 1,000 | 1,700 |
Additions | 2,000 | 3,000 | 1,000 |
Reversals | (1,000) | (2,000) | (2,000) |
Translation adjustments | (400) | (200) | 300 |
Ending balance | 2,400 | 1,800 | 1,000 |
Other [member] | |||
Disclosure of provisions [line items] | |||
Beginning balance | 25,300 | 14,800 | 7,700 |
Additions | 8,000 | 7,100 | 17,000 |
Used/payments | (8,100) | ||
Translation adjustments | (12,800) | 3,400 | (1,800) |
Ending balance | $ 20,500 | $ 25,300 | $ 14,800 |
Provisions and Contingent Lia_5
Provisions and Contingent Liabilities - Summary of Labor, Tax and Civil Provisions (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2016 | Jan. 01, 2016 |
Disclosure of provisions [line items] | |||||
Provisions | $ 242.4 | $ 260.3 | $ 302.8 | ||
Current portion | 116.9 | 124.1 | $ 123.8 | 123.9 | $ 89.7 |
Non-current portion | 125.5 | 136.2 | $ 179 | 179 | |
Tax related provision on IRPJ [member] | |||||
Disclosure of provisions [line items] | |||||
Provisions | 9.2 | 10.1 | |||
Tax related provision on PIS and COFINS [member] | |||||
Disclosure of provisions [line items] | |||||
Provisions | 5.3 | 6.8 | |||
Tax related provision on Social security contributions [member] | |||||
Disclosure of provisions [line items] | |||||
Provisions | 2.4 | 2.8 | |||
Tax related provision on Import taxes [member] | |||||
Disclosure of provisions [line items] | |||||
Provisions | 0.8 | 0.9 | |||
Tax related provision on FUNDAF [member] | |||||
Disclosure of provisions [line items] | |||||
Provisions | 0.1 | ||||
Others tax related provisions [member] | |||||
Disclosure of provisions [line items] | |||||
Provisions | 0.2 | 0.4 | |||
Tax related provision [member] | |||||
Disclosure of provisions [line items] | |||||
Provisions | 18 | 21 | |||
Labor related provision on Plurimas [member] | |||||
Disclosure of provisions [line items] | |||||
Provisions | 10 | 11.3 | |||
Labor related provision on reintegration [member] | |||||
Disclosure of provisions [line items] | |||||
Provisions | 7 | 5.1 | |||
Overtime provision [member] | |||||
Disclosure of provisions [line items] | |||||
Provisions | 6 | 1.7 | |||
Dangerousness related provision [member] | |||||
Disclosure of provisions [line items] | |||||
Provisions | 1 | 0.1 | |||
Labor related provision on indemnity [member] | |||||
Disclosure of provisions [line items] | |||||
Provisions | 3.1 | 2.3 | |||
Labor related provision on third parties [member] | |||||
Disclosure of provisions [line items] | |||||
Provisions | 0.5 | 0.9 | |||
Other labor related provision [member] | |||||
Disclosure of provisions [line items] | |||||
Provisions | 12.4 | 11.6 | |||
Labor related provision [member] | |||||
Disclosure of provisions [line items] | |||||
Provisions | 40 | 33 | |||
Civil related provision on Indemnity claims [member] | |||||
Disclosure of provisions [line items] | |||||
Provisions | 0.4 | 0.2 | |||
Civil related provision [member] | |||||
Disclosure of provisions [line items] | |||||
Provisions | 0.4 | 0.2 | |||
Provisions labor, taxes and civil [member] | |||||
Disclosure of provisions [line items] | |||||
Provisions | 58.4 | 54.2 | $ 93.1 | ||
Current portion | 20.7 | 21.5 | |||
Non-current portion | $ 37.7 | $ 32.7 |
Provisions and Contingent Lia_6
Provisions and Contingent Liabilities - Additional Information (Detail) $ in Thousands, R$ in Millions | Jul. 28, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018BRL (R$) | Dec. 31, 2017USD ($) |
Disclosure of other provisions [line items] | ||||
Contingent tax liability related to legal dispute | $ 55,900 | |||
Contingent tax liability | 15,500 | $ 6,600 | ||
Contingent liabilities | 36,400 | $ 28,000 | ||
Amount paid in relation to transactions in collaboration agreement | $ 7,040 | |||
United states securities and exchange commission [member] | ||||
Disclosure of other provisions [line items] | ||||
Payment made as disgorgement of profits | 98,200 | |||
Brazilian Securities And Exchange Commission [member] | ||||
Disclosure of other provisions [line items] | ||||
Payment made as disgorgement of profits | 20,000 | R$ 64.0 | ||
Ministerio publico federal [member] | ||||
Disclosure of other provisions [line items] | ||||
Payment made as disgorgement of profits | 20,000 | R$ 64.0 | ||
Department of justice - DOJ [member] | ||||
Disclosure of other provisions [line items] | ||||
Amount of penalty payable for misconduct | $ 107,300 | |||
Deferred prosecution agreement term | 3 years | 3 years |
Post Retirement Benefits - Summ
Post Retirement Benefits - Summary of Post Retirement Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [line items] | ||
Post-retirement benefits | $ 31.7 | $ 36.1 |
Medical benefits plan Brazil [member] | ||
Disclosure of defined benefit plans [line items] | ||
Post-retirement benefits | 27.9 | 31.8 |
Medical benefits plan subsidiaries abroad [member] | ||
Disclosure of defined benefit plans [line items] | ||
Post-retirement benefits | $ 3.8 | $ 4.3 |
Post-Retirement Benefits - Addi
Post-Retirement Benefits - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Multi-employer defined benefit plans [member] | Medical benefits plan subsidiaries abroad [member] | ||
Disclosure of summary of retirement benefit plans other benefits post retirement [line items] | ||
Defined contribution pension plan by employer | $ 14.1 | $ 22.2 |
Financial Instruments - Summary
Financial Instruments - Summary of Financial Instrument by Category (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | |||||
Cash and cash equivalents | $ 1,280.9 | $ 1,270.8 | $ 1,241.5 | $ 1,241.5 | $ 2,165.5 |
Financial investments | 1,926.9 | 2,617.3 | 1,948.7 | ||
Guarantee Deposits | 349.7 | 393.9 | |||
Collateralized accounts receivable | 235.9 | 288.7 | |||
Contract assets | 358 | 447.5 | 370.6 | ||
Trade accounts receivable, net | 318 | 297 | |||
Customer and commercial financing | 11.7 | 16.4 | |||
Derivative financial instruments | 9.5 | 34.3 | |||
Other Assets | 66.2 | 82.2 | |||
Financial assets | 4,556.8 | 5,448.1 | |||
LIABILITIES | |||||
Loans and financing | 3,647.6 | 4,198.5 | 3,759.9 | $ 3,759.9 | $ 4,229.9 |
Loans and lease financing | 4,198.5 | ||||
Trade accounts payable and others liabilities | 1,550.5 | 1,502.5 | |||
Financial guarantee and of residual value | 140.4 | 139.6 | $ 188 | ||
Derivative financial instruments | 8.1 | 8.9 | |||
Financial liabilities | 5,346.7 | 5,849.5 | |||
Financial Instruments at amortized cost [member] | |||||
ASSETS | |||||
Cash and cash equivalents | 1,280.9 | 1,270.8 | |||
Financial investments | 48.8 | 50.5 | |||
Guarantee Deposits | 349.7 | 393.9 | |||
Collateralized accounts receivable | 235.9 | 288.7 | |||
Contract assets | 358 | 447.5 | |||
Trade accounts receivable, net | 318 | 297 | |||
Customer and commercial financing | 11.7 | 16.4 | |||
Other Assets | 66.2 | 82.2 | |||
Financial assets | 2,669.2 | 2,847 | |||
LIABILITIES | |||||
Loans and financing | 3,647.6 | ||||
Loans and lease financing | 4,198.5 | ||||
Trade accounts payable and others liabilities | 1,550.5 | 1,502.5 | |||
Financial guarantee and of residual value | 15 | 30.7 | |||
Financial liabilities | 5,213.2 | 5,731.7 | |||
Financial instruments at fair value through other comprehensive income [member] | |||||
ASSETS | |||||
Financial investments | 507.8 | 1,307.6 | |||
Financial assets | 507.8 | 1,307.6 | |||
Financial instruments measured or designated at fair value through profit or loss [member] | |||||
ASSETS | |||||
Financial investments | 1,370.3 | 1,259.2 | |||
Derivative financial instruments | 9.5 | 34.3 | |||
Financial assets | 1,379.8 | 1,293.5 | |||
LIABILITIES | |||||
Financial guarantee and of residual value | 125.4 | 108.9 | |||
Derivative financial instruments | 8.1 | 8.9 | |||
Financial liabilities | $ 133.5 | $ 117.8 |
Financial Instruments - Summa_2
Financial Instruments - Summary of Company's Financial Assets and Liabilities (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2018 | Jan. 01, 2017 | Dec. 31, 2016 | Jan. 01, 2016 | Dec. 31, 2015 | |
ASSETS | ||||||
Cash and cash equivalents | $ 1,270.8 | $ 1,280.9 | $ 1,241.5 | $ 1,241.5 | $ 2,165.5 | |
Financial investments | 5,448.1 | 4,556.8 | ||||
Financial investments | 2,617.3 | 1,926.9 | 1,948.7 | |||
Guarantee Deposits | 393.9 | 349.7 | ||||
Collateralized accounts receivable | 288.7 | 235.9 | ||||
Contract assets | 447.5 | 358 | 370.6 | |||
Trade accounts receivable, net | 297 | 318 | ||||
Customer and commercial financing | 16.4 | 11.7 | ||||
Derivative financial instruments | 34.3 | 9.5 | ||||
Other assets | 376.8 | 309 | ||||
Assets | 11,974.6 | 11,293.3 | 1,719.8 | 11,719.8 | $ 11,707.7 | |
LIABILITIES | ||||||
Loans and financing | 4,198.5 | 3,647.6 | 3,759.9 | 3,759.9 | $ 4,229.9 | |
Trade accounts payable and others liabilities | 1,502.5 | 1,550.5 | ||||
Derivative financial instruments | 8.9 | 8.1 | ||||
Liabilities | 7,797.1 | 7,353.2 | $ 7,783.4 | |||
Level 3 [member] | ||||||
ASSETS | ||||||
Assets | 59.6 | 59.9 | 35 | |||
LIABILITIES | ||||||
Liabilities | 108.9 | 125.4 | $ 122.2 | |||
Financial instruments at fair value through profit or loss, category [member] | ||||||
ASSETS | ||||||
Cash and cash equivalents | 1,270.8 | 1,280.9 | ||||
Financial investments | 1,926.9 | |||||
Financial investments | 2,617.3 | |||||
Guarantee Deposits | 393.9 | 349.7 | ||||
Collateralized accounts receivable | 288.7 | 235.9 | ||||
Contract assets | 447.5 | 358 | ||||
Trade accounts receivable, net | 297 | 318 | ||||
Customer and commercial financing | 11.7 | |||||
Customer and commercial financing | 16.4 | |||||
Derivative financial instruments | 34.3 | 9.5 | ||||
Other assets | 82.2 | 66.2 | ||||
Assets | 5,448.1 | 4,556.8 | ||||
LIABILITIES | ||||||
Loans and financing | 3,647.7 | |||||
Loans and financing | 4,198.5 | |||||
Trade accounts payable and others liabilities | 1,502.5 | 1,550.5 | ||||
Financial guarantee and of residual value | 139.6 | 140.4 | ||||
Derivative financial instruments | 8.9 | 8.1 | ||||
Liabilities | 5,849.5 | 5,346.7 | ||||
Financial instruments at fair value through profit or loss, category [member] | Fair value of the other financial instruments [member] | ||||||
ASSETS | ||||||
Cash and cash equivalents | 1,270.8 | 1,280.9 | ||||
Financial investments | 48.8 | |||||
Financial investments | 50.4 | |||||
Guarantee Deposits | 393.9 | 349.7 | ||||
Collateralized accounts receivable | 288.7 | 235.9 | ||||
Contract assets | 447.5 | 358 | ||||
Trade accounts receivable, net | 297 | 318 | ||||
Customer and commercial financing | 11.7 | |||||
Customer and commercial financing | 16.4 | |||||
Other assets | 82.2 | 66.2 | ||||
Assets | 2,846.9 | 2,669.2 | ||||
LIABILITIES | ||||||
Loans and financing | 3,647.7 | |||||
Loans and financing | 4,198.5 | |||||
Trade accounts payable and others liabilities | 1,502.5 | 1,550.5 | ||||
Financial guarantee and of residual value | 30.7 | 15 | ||||
Liabilities | 5,731.7 | 5,213.2 | ||||
Financial instruments at fair value through profit or loss, category [member] | Fair value [member] | ||||||
ASSETS | ||||||
Cash and cash equivalents | 1,270.8 | 1,280.9 | ||||
Financial investments | 1,926.1 | |||||
Financial investments | 2,617.3 | |||||
Guarantee Deposits | 393.9 | 349.7 | ||||
Collateralized accounts receivable | 288.7 | 235.9 | ||||
Contract assets | 447.5 | 358 | ||||
Trade accounts receivable, net | 297 | 318 | ||||
Customer and commercial financing | 11.7 | |||||
Customer and commercial financing | 16.4 | |||||
Derivative financial instruments | 34.3 | 9.5 | ||||
Other assets | 82.2 | 66.2 | ||||
Assets | 5,448.1 | 4,556 | ||||
LIABILITIES | ||||||
Loans and financing | 3,756.8 | |||||
Loans and financing | 4,408.6 | |||||
Trade accounts payable and others liabilities | 1,502.5 | 1,550.5 | ||||
Financial guarantee and of residual value | 139.6 | 140.4 | ||||
Derivative financial instruments | 8.9 | 8.1 | ||||
Liabilities | 6,059.6 | 5,455.8 | ||||
Financial instruments at fair value through profit or loss, category [member] | Fair value of financial instruments measured at fair value through profit or loss [member] | ||||||
ASSETS | ||||||
Financial investments | 1,878.1 | |||||
Financial investments | 2,566.8 | |||||
Derivative financial instruments | 34.3 | 9.5 | ||||
Assets | 2,601.1 | 1,887.6 | ||||
LIABILITIES | ||||||
Financial guarantee and of residual value | 108.9 | 125.4 | ||||
Derivative financial instruments | 8.9 | 8.1 | ||||
Liabilities | 117.8 | 133.5 | ||||
Financial instruments at fair value through profit or loss, category [member] | Fair value of financial instruments measured at fair value through profit or loss [member] | Level 2 [member] | ||||||
ASSETS | ||||||
Financial investments | 1,818.2 | |||||
Financial investments | 2,507.2 | |||||
Derivative financial instruments | 34.3 | 9.5 | ||||
Assets | 2,541.5 | 1,827.7 | ||||
LIABILITIES | ||||||
Derivative financial instruments | 8.9 | 8.1 | ||||
Liabilities | 8.9 | 8.1 | ||||
Financial instruments at fair value through profit or loss, category [member] | Fair value of financial instruments measured at fair value through profit or loss [member] | Level 3 [member] | ||||||
ASSETS | ||||||
Financial investments | 59.9 | |||||
Financial investments | 59.6 | |||||
Assets | 59.6 | 59.9 | ||||
LIABILITIES | ||||||
Financial guarantee and of residual value | 108.9 | 125.4 | ||||
Liabilities | $ 108.9 | $ 125.4 |
Financial Instruments - Summa_3
Financial Instruments - Summary of Fair Value of Liabilities Measurement Using Significant Unobservable Inputs (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Opening balance | $ 11,974.6 | $ 11,719.8 |
Ending balance | 11,293.3 | 11,974.6 |
Opening balance | 7,797.1 | |
Ending balance | 7,353.2 | 7,797.1 |
Level 3 [member] | ||
Disclosure of significant unobservable inputs used in fair value measurement of liabilities [line items] | ||
Opening balance | 59.6 | 35 |
Adding Shares | 58.8 | |
Disposal Claim | (34.8) | |
Ending balance | 59.9 | 59.6 |
Opening balance | 108.9 | 122.2 |
Market value | 16.5 | (13.3) |
Ending balance | $ 125.4 | $ 108.9 |
Financial Instruments - Additio
Financial Instruments - Additional information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about financial instruments [line items] | ||
Lower and surpassed in financial indebtedness | $ 439.2 | $ 310.8 |
Financial indebtedness of short term | 4.90% | 9.30% |
Average weighted term | 5 years 6 months | 6 years |
Percentage of expected credit loss | 1.90% | 1.80% |
Bottom of range [member] | Methodology [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Risk Variable | 25.00% | |
Bottom of range [member] | Sensitivity analysis [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Risk Variable | 25.00% | |
Top of range [member] | Methodology [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Risk Variable | 50.00% | |
Top of range [member] | Sensitivity analysis [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Risk Variable | 50.00% |
Financial Instruments - Summa_4
Financial Instruments - Summary of Additional Information Related to Authorization of Undiscounted Contractual Obligations and Commercial Commitments (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of liquidity risk [line items] | |||||
Loans and financing | $ 3,647.6 | $ 4,198.5 | $ 3,759.9 | $ 3,759.9 | $ 4,229.9 |
Liquidity risk [member] | Less than one year [member] | |||||
Disclosure of liquidity risk [line items] | |||||
Loans and financing | 321 | 491.6 | |||
Trade accounts payable | 892.1 | 824.7 | |||
Recourse and non recourse debt | 324 | 17.6 | |||
Financial guarantees | 51 | 22.2 | |||
Other liabilities | 5.4 | 11.4 | |||
Total | 1,593.5 | 1,367.5 | |||
Liquidity risk [member] | One to three years [member] | |||||
Disclosure of liquidity risk [line items] | |||||
Loans and financing | 867.3 | 784.9 | |||
Recourse and non recourse debt | 7.6 | 332.7 | |||
Financial guarantees | 39.9 | 52.5 | |||
Other liabilities | 92.2 | 46.1 | |||
Total | 1,007 | 1,216.2 | |||
Liquidity risk [member] | Three to five years [member] | |||||
Disclosure of liquidity risk [line items] | |||||
Loans and financing | 1,345.7 | 1,220.2 | |||
Recourse and non recourse debt | 6.6 | 8 | |||
Financial guarantees | 31.3 | 31.1 | |||
Other liabilities | 95.3 | 92.3 | |||
Total | 1,478.9 | 1,351.6 | |||
Liquidity risk [member] | After 2023 [member] | |||||
Disclosure of liquidity risk [line items] | |||||
Loans and financing | 2,167.3 | 2,904 | |||
Recourse and non recourse debt | 3.2 | 5.8 | |||
Financial guarantees | 29.9 | 51 | |||
Other liabilities | 34.4 | 99.6 | |||
Total | 2,234.8 | 3,060.4 | |||
Liquidity risk [member] | Cash flow [member] | |||||
Disclosure of liquidity risk [line items] | |||||
Loans and financing | 4,701.3 | 5,400.7 | |||
Trade accounts payable | 892.1 | 824.7 | |||
Recourse and non recourse debt | 341.4 | 364.1 | |||
Financial guarantees | 152.1 | 156.8 | |||
Other liabilities | 227.3 | 249.4 | |||
Total | $ 6,314.2 | $ 6,995.7 |
Financial Instruments - Summa_5
Financial Instruments - Summary of Company's Cash, Cash Equivalents, Financial Investments and Loans and Financing (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Cash Cash Equivalents Financing Investments And Loans And Financing [line items] | |||||
Total amount | $ 3,647.6 | $ 4,198.5 | $ 3,759.9 | $ 3,759.9 | $ 4,229.9 |
Without the effect of derivative transactions [member] | |||||
Disclosure Of Cash Cash Equivalents Financing Investments And Loans And Financing [line items] | |||||
Pre-fixed amount | $ 2,742.3 | ||||
Pre-fixed percentage | 85.49% | ||||
Post-fixed amount | $ 465.5 | ||||
Post-fixed percentage | 14.51% | ||||
Total amount | $ 3,207.8 | ||||
Total percentage | 100.00% | ||||
Pre-fixed amount | $ 3,577.7 | ||||
Pre-fixed percentage | 98.09% | ||||
Post-fixed amount | $ 69.9 | $ 69.8 | |||
Post-fixed percentage | 100.00% | 1.91% | |||
Total amount | $ 3,647.5 | ||||
Total percentage | 100.00% | ||||
With the effect of derivative transactions [member] | |||||
Disclosure Of Cash Cash Equivalents Financing Investments And Loans And Financing [line items] | |||||
Pre-fixed amount | $ 2,742.3 | ||||
Pre-fixed percentage | 85.49% | ||||
Post-fixed amount | $ 465.5 | ||||
Post-fixed percentage | 14.51% | ||||
Total amount | $ 3,207.8 | ||||
Total percentage | 100.00% | ||||
Pre-fixed amount | $ 3,194.3 | ||||
Pre-fixed percentage | 87.57% | ||||
Post-fixed amount | $ 453.4 | $ 453.3 | |||
Post-fixed percentage | 100.00% | 12.43% | |||
Total amount | $ 3,647.6 | ||||
Total percentage | 100.00% |
Financial Instruments - Summa_6
Financial Instruments - Summary of Company's Cash Equivalents and Post Fixed Financing (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Without the effect of derivative transactions [member] | ||
Disclosure of Cash Equivalents and Post Fixed Financing [line items] | ||
Cash equivalents and financial investments | $ 465.5 | |
Loans and financing | $ 69.9 | $ 69.8 |
Cash equivalents and financial investments | 100.00% | |
Cash equivalents and financial investments, post fixed | 14.51% | |
Loans and financing | 100.00% | 1.91% |
With the effect of derivative transactions [member] | ||
Disclosure of Cash Equivalents and Post Fixed Financing [line items] | ||
Cash equivalents and financial investments | $ 465.5 | |
Loans and financing | $ 453.4 | $ 453.3 |
Cash equivalents and financial investments | 100.00% | |
Cash equivalents and financial investments, post fixed | 14.51% | |
Loans and financing | 100.00% | 12.43% |
CDI [member] | Without the effect of derivative transactions [member] | ||
Disclosure of Cash Equivalents and Post Fixed Financing [line items] | ||
Cash equivalents and financial investments | $ 403.1 | |
Cash equivalents and financial investments, post fixed | 86.61% | |
Loans and financing | 97.28% | |
CDI [member] | With the effect of derivative transactions [member] | ||
Disclosure of Cash Equivalents and Post Fixed Financing [line items] | ||
Cash equivalents and financial investments | $ 403.2 | |
Loans and financing | $ 386.1 | |
Cash equivalents and financial investments, post fixed | 86.62% | |
Loans and financing | 14.42% | |
Libor [member] | Without the effect of derivative transactions [member] | ||
Disclosure of Cash Equivalents and Post Fixed Financing [line items] | ||
Cash equivalents and financial investments | $ 62.3 | |
Loans and financing | $ 68 | |
Cash equivalents and financial investments, post fixed | 13.39% | |
Loans and financing | 0.00% | |
Libor [member] | With the effect of derivative transactions [member] | ||
Disclosure of Cash Equivalents and Post Fixed Financing [line items] | ||
Cash equivalents and financial investments | $ 62.3 | |
Loans and financing | $ 65.4 | |
Cash equivalents and financial investments, post fixed | 13.38% | |
Loans and financing | 85.16% | |
TJLP [member] | Without the effect of derivative transactions [member] | ||
Disclosure of Cash Equivalents and Post Fixed Financing [line items] | ||
Loans and financing | $ 1.9 | |
Loans and financing | 2.72% | |
TJLP [member] | With the effect of derivative transactions [member] | ||
Disclosure of Cash Equivalents and Post Fixed Financing [line items] | ||
Loans and financing | $ 1.9 | |
Loans and financing | 0.42% |
Financial Instruments - Summa_7
Financial Instruments - Summary of Changes in Foreign Exchange Rates (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Trade accounts receivable: | |||
Trade accounts receivable | $ 318 | $ 297 | |
Without the effect of derivative transactions [member] | |||
Loans and financing | |||
Loans and financing | 3,647.7 | 4,198.5 | $ 3,759.9 |
Trade accounts payable | |||
Trade accounts payable | 892.1 | 824.7 | 952.1 |
Total | 4,539.8 | 5,023.2 | 4,712 |
Cash and cash equivalents and financial investments | |||
Cash and cash equivalents and financial investments | 3,207.9 | 3,888.1 | 3,190.2 |
Trade accounts receivable: | |||
Trade accounts receivable | 318 | 297 | 336.8 |
Total | 3,525.9 | 4,185.1 | 3,527 |
Brazil, Brazil Real [member] | Without the effect of derivative transactions [member] | |||
Loans and financing | |||
Loans and financing | 286.5 | 629 | 832.9 |
Trade accounts payable | |||
Trade accounts payable | 77.1 | 87.6 | 91.9 |
Cash and cash equivalents and financial investments | |||
Cash and cash equivalents and financial investments | 406.5 | 750.2 | 1,180 |
Trade accounts receivable: | |||
Trade accounts receivable | 10.7 | 30.8 | 143.4 |
Net exposure (1-2): | |||
Net exposure | (53.6) | (64.4) | (398.6) |
United States of America, Dollars [member] | Without the effect of derivative transactions [member] | |||
Loans and financing | |||
Loans and financing | 3,341.6 | 3,555.5 | 2,910.7 |
Trade accounts payable | |||
Trade accounts payable | 715.6 | 621 | 783.2 |
Cash and cash equivalents and financial investments | |||
Cash and cash equivalents and financial investments | 2,746.9 | 2,979.2 | 1,838.3 |
Trade accounts receivable: | |||
Trade accounts receivable | 274.2 | 154.1 | 187.7 |
Net exposure (1-2): | |||
Net exposure | 1,036.1 | 1,043.2 | 1,667.9 |
Euro Member Countries, Euro [member] | Without the effect of derivative transactions [member] | |||
Loans and financing | |||
Loans and financing | 19.6 | 14 | 16.3 |
Trade accounts payable | |||
Trade accounts payable | 27.2 | 115 | 75.3 |
Cash and cash equivalents and financial investments | |||
Cash and cash equivalents and financial investments | 47.7 | 97.5 | 127.1 |
Trade accounts receivable: | |||
Trade accounts receivable | 33.1 | 106.1 | 5.6 |
Net exposure (1-2): | |||
Net exposure | (34) | (74.6) | (41.1) |
Other currencies [member] | Without the effect of derivative transactions [member] | |||
Trade accounts payable | |||
Trade accounts payable | 72.2 | 1.1 | 1.7 |
Cash and cash equivalents and financial investments | |||
Cash and cash equivalents and financial investments | 6.8 | 61.2 | 44.8 |
Trade accounts receivable: | |||
Trade accounts receivable | 6 | 0.1 | |
Net exposure (1-2): | |||
Net exposure | $ 65.4 | $ (66.1) | $ (43.2) |
Financial Instruments - Summa_8
Financial Instruments - Summary of Interest Risk Factor (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of interest risk factor [line items] | |||||
Loans and financing | $ 3,647.6 | $ 4,198.5 | $ 3,759.9 | $ 3,759.9 | $ 4,229.9 |
Interbank deposit certificate CDI rate [member] | |||||
Disclosure of interest risk factor [line items] | |||||
Cash equivalents and financial investments | 403.1 | ||||
Net impact | $ 403.1 | ||||
Rates considered | 6.40% | ||||
Libor [member] | |||||
Disclosure of interest risk factor [line items] | |||||
Cash equivalents and financial investments | $ 62.3 | ||||
Loans and financing | (68) | ||||
Net impact | $ (5.7) | ||||
Rates considered | 2.87% | ||||
TJLP [member] | |||||
Disclosure of interest risk factor [line items] | |||||
Loans and financing | $ (1.9) | ||||
Net impact | $ (1.9) | ||||
Rates considered | 6.56% | ||||
-50% [member] | Interbank deposit certificate CDI rate [member] | |||||
Disclosure of interest risk factor [line items] | |||||
Cash equivalents and financial investments | $ (12.6) | ||||
Net impact | $ (12.6) | ||||
Rates considered | 3.28% | ||||
-50% [member] | Libor [member] | |||||
Disclosure of interest risk factor [line items] | |||||
Cash equivalents and financial investments | $ (0.9) | ||||
Loans and financing | 1 | ||||
Net impact | $ 0.1 | ||||
Rates considered | 1.43% | ||||
-50% [member] | TJLP [member] | |||||
Disclosure of interest risk factor [line items] | |||||
Loans and financing | $ 0.1 | ||||
Net impact | $ 0.1 | ||||
Rates considered | 3.49% | ||||
-25% [member] | Interbank deposit certificate CDI rate [member] | |||||
Disclosure of interest risk factor [line items] | |||||
Cash equivalents and financial investments | $ (6) | ||||
Net impact | $ (6) | ||||
Rates considered | 4.91% | ||||
-25% [member] | Libor [member] | |||||
Disclosure of interest risk factor [line items] | |||||
Cash equivalents and financial investments | $ (0.5) | ||||
Loans and financing | $ 0.5 | ||||
Rates considered | 2.14% | ||||
-25% [member] | TJLP [member] | |||||
Disclosure of interest risk factor [line items] | |||||
Rates considered | 5.24% | ||||
Probable scenario [member] | Interbank deposit certificate CDI rate [member] | |||||
Disclosure of interest risk factor [line items] | |||||
Cash equivalents and financial investments | $ 0.6 | ||||
Net impact | $ 0.6 | ||||
Rates considered | 6.55% | ||||
Probable scenario [member] | Libor [member] | |||||
Disclosure of interest risk factor [line items] | |||||
Rates considered | 2.86% | ||||
Probable scenario [member] | TJLP [member] | |||||
Disclosure of interest risk factor [line items] | |||||
Rates considered | 6.98% | ||||
+25% [member] | Interbank deposit certificate CDI rate [member] | |||||
Disclosure of interest risk factor [line items] | |||||
Cash equivalents and financial investments | $ 7.2 | ||||
Net impact | $ 7.2 | ||||
Rates considered | 8.19% | ||||
+25% [member] | Libor [member] | |||||
Disclosure of interest risk factor [line items] | |||||
Cash equivalents and financial investments | $ 0.4 | ||||
Loans and financing | (0.5) | ||||
Net impact | $ (0.1) | ||||
Rates considered | 3.57% | ||||
+25% [member] | TJLP [member] | |||||
Disclosure of interest risk factor [line items] | |||||
Rates considered | 8.73% | ||||
+50% [member] | Interbank deposit certificate CDI rate [member] | |||||
Disclosure of interest risk factor [line items] | |||||
Cash equivalents and financial investments | $ 13.8 | ||||
Net impact | $ 13.8 | ||||
Rates considered | 9.83% | ||||
+50% [member] | Libor [member] | |||||
Disclosure of interest risk factor [line items] | |||||
Cash equivalents and financial investments | $ 0.9 | ||||
Loans and financing | (1) | ||||
Net impact | $ (0.1) | ||||
Rates considered | 4.29% | ||||
+50% [member] | TJLP [member] | |||||
Disclosure of interest risk factor [line items] | |||||
Loans and financing | $ (0.1) | ||||
Net impact | $ (0.1) | ||||
Rates considered | 10.47% |
Financial Instruments - Summa_9
Financial Instruments - Summary of Interest Risk Factor (Parenthetical) (Detail) - Interest rate risk [member] | 12 Months Ended |
Dec. 31, 2018 | |
Bottom of range [member] | |
Disclosure of interest risk factor [line items] | |
Risk Variable | 25.00% |
Top of range [member] | |
Disclosure of interest risk factor [line items] | |
Risk Variable | 50.00% |
Financial Instruments - Summ_10
Financial Instruments - Summary of Foreign Exchange Risk Factor (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | $ 4,556.8 | $ 5,448.1 |
Liabilities | 5,346.7 | $ 5,849.5 |
BRL [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | 745.3 | |
Liabilities | (79.7) | |
Net impact | $ 825 | |
Exchange rate considered | 3,874,800 | |
BRL [member] | Loans And Financing [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Liabilities | $ (286.5) | |
BRL [member] | Other Liabilities [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Liabilities | 206.8 | |
BRL [member] | Cash and cash equivalents and financial investment [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | 528.4 | |
BRL [member] | Other financial asset [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | 216.9 | |
-50% [member] | BRL [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | 378.9 | |
Liabilities | (40.6) | |
Net impact | $ 338.3 | |
Exchange rate considered | 1,905,000 | |
-50% [member] | BRL [member] | Loans And Financing [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Liabilities | $ (145.7) | |
-50% [member] | BRL [member] | Other Liabilities [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Liabilities | 105.1 | |
-50% [member] | BRL [member] | Cash and cash equivalents and financial investment [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | 268.6 | |
-50% [member] | BRL [member] | Other financial asset [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | 110.3 | |
-25% [member] | BRL [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | 195.7 | |
Liabilities | (20.9) | |
Net impact | $ 174.8 | |
Exchange rate considered | 2,857,500 | |
-25% [member] | BRL [member] | Loans And Financing [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Liabilities | $ (75.2) | |
-25% [member] | BRL [member] | Other Liabilities [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Liabilities | 54.3 | |
-25% [member] | BRL [member] | Cash and cash equivalents and financial investment [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | 138.7 | |
-25% [member] | BRL [member] | Other financial asset [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | 57 | |
Probable scenario [member] | BRL [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | 12.4 | |
Liabilities | (1.3) | |
Net impact | $ 11.1 | |
Exchange rate considered | 3,810,000 | |
Probable scenario [member] | BRL [member] | Loans And Financing [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Liabilities | $ (4.8) | |
Probable scenario [member] | BRL [member] | Other Liabilities [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Liabilities | 3.5 | |
Probable scenario [member] | BRL [member] | Cash and cash equivalents and financial investment [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | 8.8 | |
Probable scenario [member] | BRL [member] | Other financial asset [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | 3.6 | |
+25% [member] | BRL [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | (170.8) | |
Liabilities | 18.2 | |
Net impact | $ (152.6) | |
Exchange rate considered | 4,762,500 | |
+25% [member] | BRL [member] | Loans And Financing [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Liabilities | $ 65.6 | |
+25% [member] | BRL [member] | Other Liabilities [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Liabilities | (47.4) | |
+25% [member] | BRL [member] | Cash and cash equivalents and financial investment [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | (121.1) | |
+25% [member] | BRL [member] | Other financial asset [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | (49.7) | |
+50% [member] | BRL [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | (354) | |
Liabilities | 37.9 | |
Net impact | $ (316.1) | |
Exchange rate considered | 5,715,000 | |
+50% [member] | BRL [member] | Loans And Financing [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Liabilities | $ 136.1 | |
+50% [member] | BRL [member] | Other Liabilities [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Liabilities | (98.2) | |
+50% [member] | BRL [member] | Cash and cash equivalents and financial investment [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | (251) | |
+50% [member] | BRL [member] | Other financial asset [member] | ||
Disclosure of Foreign Exchange Risk Factor [Line items] | ||
Assets | $ (103) |
Financial Instruments - Summ_11
Financial Instruments - Summary of Foreign Exchange Risk Factor (Parenthetical) (Detail) - Foreign exchange risk [member] | 12 Months Ended |
Dec. 31, 2018 | |
Bottom of range [member] | |
Disclosure of Foreign Exchange Risk Factor [Line items] | |
Risk Variable | 25.00% |
Top of range [member] | |
Disclosure of Foreign Exchange Risk Factor [Line items] | |
Risk Variable | 50.00% |
Financial Instruments - Summ_12
Financial Instruments - Summary of Derivative Contracts (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | $ 1.6 |
Libor [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 2.87% |
CDI [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 6.40% |
Dollar Per Real [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 3.8748% |
London inter bank offered rate one [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 1.1467% |
Interest swap-fair value hedge [member] | Interbank deposit certificate CDI rate [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | $ 6.5 |
Hedge designated as cash flow [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | (7.4) |
Hedge designated as cash flow [member] | Libor [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | 2.3 |
Interest swap [member] | Libor [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | 0.2 |
-50% [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | $ 17 |
-50% [member] | Libor [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 1.43% |
-50% [member] | CDI [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 3.28% |
-50% [member] | Dollar Per Real [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 1.905% |
-50% [member] | London inter bank offered rate one [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 0.575% |
-50% [member] | Interest swap-fair value hedge [member] | Interbank deposit certificate CDI rate [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | $ 4.1 |
-50% [member] | Hedge designated as cash flow [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | 13.5 |
-50% [member] | Foreign exchange option [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | (0.6) |
-25% [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | $ 11.5 |
-25% [member] | Libor [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 2.14% |
-25% [member] | CDI [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 4.91% |
-25% [member] | Dollar Per Real [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 2.8575% |
-25% [member] | London inter bank offered rate one [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 0.8625% |
-25% [member] | Interest swap-fair value hedge [member] | Interbank deposit certificate CDI rate [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | $ 1.8 |
-25% [member] | Hedge designated as cash flow [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | 9.9 |
-25% [member] | Foreign exchange option [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | (0.2) |
Probable scenario [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | $ 6.8 |
Probable scenario [member] | Libor [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 2.86% |
Probable scenario [member] | CDI [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 6.55% |
Probable scenario [member] | Dollar Per Real [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 3.81% |
Probable scenario [member] | London inter bank offered rate one [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 1.15% |
Probable scenario [member] | Interest swap-fair value hedge [member] | Interbank deposit certificate CDI rate [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | $ (0.5) |
Probable scenario [member] | Hedge designated as cash flow [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | 7.3 |
+25% [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | $ 2.5 |
+25% [member] | Libor [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 3.57% |
+25% [member] | CDI [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 8.19% |
+25% [member] | Dollar Per Real [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 4.7625% |
+25% [member] | London inter bank offered rate one [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 1.4375% |
+25% [member] | Interest swap-fair value hedge [member] | Interbank deposit certificate CDI rate [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | $ (2.4) |
+25% [member] | Hedge designated as cash flow [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | 4.7 |
+25% [member] | Foreign exchange option [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | 0.2 |
+50% [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | $ (2.6) |
+50% [member] | Libor [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 4.29% |
+50% [member] | CDI [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 9.83% |
+50% [member] | Dollar Per Real [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 5.715% |
+50% [member] | London inter bank offered rate one [member] | |
Disclosure of Derivative Contracts [Line items] | |
Rate considered | 1.725% |
+50% [member] | Interest swap-fair value hedge [member] | Interbank deposit certificate CDI rate [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | $ (4.3) |
+50% [member] | Hedge designated as cash flow [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | 1.3 |
+50% [member] | Interest swap [member] | Libor [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | 0.1 |
+50% [member] | Foreign exchange option [member] | |
Disclosure of Derivative Contracts [Line items] | |
Derivative contract | $ 0.3 |
Financial Instruments - Summ_13
Financial Instruments - Summary of Derivative Contracts (Parenthetical) (Detail) - Derivative contract [member] | 12 Months Ended |
Dec. 31, 2018 | |
Bottom of range [member] | |
Disclosure of Derivative Contracts [Line items] | |
Risk Variable | 25.00% |
Top of range [member] | |
Disclosure of Derivative Contracts [Line items] | |
Risk Variable | 50.00% |
Financial Instruments - Summ_14
Financial Instruments - Summary of Residual Value Guarantees (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Disclosure of Residual Value Guarantees [Line items] | |
Financial guarantee of residual value | $ 125.4 |
Total | 125.4 |
-50% [member] | |
Disclosure of Residual Value Guarantees [Line items] | |
Financial guarantee of residual value | (104.5) |
Total | (104.5) |
-25% [member] | |
Disclosure of Residual Value Guarantees [Line items] | |
Financial guarantee of residual value | (90) |
Total | (90) |
Probable scenario [member] | |
Disclosure of Residual Value Guarantees [Line items] | |
Financial guarantee of residual value | (1) |
Total | (1) |
+25% [member] | |
Disclosure of Residual Value Guarantees [Line items] | |
Financial guarantee of residual value | 94.8 |
Total | 94.8 |
+50% [member] | |
Disclosure of Residual Value Guarantees [Line items] | |
Financial guarantee of residual value | 106 |
Total | $ 106 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) $ / shares in Units, $ in Millions | Dec. 14, 2018USD ($)$ / shares | Sep. 13, 2018USD ($)$ / shares | Jun. 14, 2018USD ($)$ / shares | Mar. 05, 2018USD ($)$ / shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2016 | Dec. 31, 2017USD ($)shares | Jan. 01, 2017USD ($) |
Shareholders equity [line items] | ||||||||
Common shares authorized | shares | 1,000,000,000 | |||||||
Subscribed and paid up capital | $ 1,551.6 | $ 1,438 | $ 1,438 | |||||
Subscribed and paid up capital, shares | shares | 740,465,044 | |||||||
Shares held in Treasury | shares | 4,977,698 | 7,423,705 | ||||||
Description of common stock voting right | Each common share generally empowered with one vote at general shareholders' meeting, considering that no shareholder or group of shareholders, may exercise votes representing more than 5% of the quantity of shared into which our capital stock is divided. Votes that exceed this 5% threshold will not be considered. | |||||||
Percentage of equity reserve of investment and working capital exceeds | 0.80 | |||||||
Increase in capital | $ 113.6 | |||||||
Amount of shares held in Treasury | $ 31.4 | $ 51.8 | $ 49.1 | |||||
Market value of treasury shares | $ 27.5 | $ 44.4 | ||||||
Percentage of net profit on statutory reserve | 5.00% | |||||||
Interest on capital | $ 1.9 | $ 1.8 | $ 3.8 | $ 4.4 | ||||
Interest on capital per share | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Percentage of withholding tax | 15.00% | |||||||
Percentage of income tax | 15.00% | |||||||
Top of range [member] | ||||||||
Shareholders equity [line items] | ||||||||
Percentage of reserve on capital | 20.00% | |||||||
Percentage of reserve on capital and capital reserve | 30.00% |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Treasury Shares (Detail) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Shareholders Equity[abstract] | |
Beginning balance | $ 51.8 |
Used for stock options plan | (20.4) |
Ending balance | $ 31.4 |
Quantity, Beginning balance | shares | 7,423,705 |
Quantity, Used for stock options plan | shares | (2,446,007) |
Quantity, Ending balance | shares | 4,977,698 |
Share value, Beginning balance | $ / shares | $ 7 |
Share value, Used for stock options plan | $ / shares | 8.3 |
Share value, Ending balance | $ / shares | $ 6.3 |
Net income of uses, Used for stock options plan | $ 10.9 |
Net income of uses, Ending balance | $ 10.9 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - Class_of_Stock | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Description of share based compensation | The Company currently has two LTI modes stock options and virtual shares. | |
Option grant date | Last sixty trading days | |
Number of trading days | 10 trading days | |
Restricted virtual shares [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Percentage of third anniversary grant date | 33.00% | |
Percentage of fourth anniversary grant date | 33.00% | |
Percentage of fifth anniversary grant date | 34.00% | |
Top of range [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Percentage adjusted to offset speculation | 30.00% | |
Top of range [member] | Option Granted For Others [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Option exercise period | P7Y | |
Phantom Share Plans [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of trading days | 30 trading days | |
Number of classes | 2 | |
Phantom Share Plans [member] | Restricted virtual shares [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Percentage of shares issued | 50.00% | |
Phantom Share Plans [member] | Virtual performance shares [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Percentage of shares issued | 50.00% | |
Grant Date Four [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Vesting, Conditions | 33% after 3 years | |
Grant Date Five [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Vesting, Conditions | 33% after 4 years | |
Grant Date Six [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Vesting, Conditions | 34% after 5 years |
Share-based Compensation - Summ
Share-based Compensation - Summary of Grants Awarded (Detail) shares in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Grants | 9,354,000 |
Exercised | (6,141,302) |
Canceled | (2,275,990) |
Outstanding | 936,708 |
Exercible | $ | $ 27.2 |
Grants on January 23, 2012 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Grants | 4,860,000 |
Exercised | (3,732,000) |
Canceled | (1,009,100) |
Outstanding | 118,900 |
Exercible | $ | $ 11.5 |
Grants on March 20, 2013 [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Grants | 4,494,000 |
Exercised | (2,409,302) |
Canceled | (1,266,890) |
Outstanding | 817,808 |
Exercible | $ | $ 15.7 |
Share-based Compensation - Disc
Share-based Compensation - Disclosure of Number and Weighted Average Exercise Prices of Share Options (Detail) - 12 months ended Dec. 31, 2018 shares in Thousands, R$ in Millions, $ in Millions | USD ($)shares | BRL (R$)shares |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | Last sixty trading days | Last sixty trading days |
Grants on February 25, 2014 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | February 25, 2014 | February 25, 2014 |
Grants on March 03, 2015 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | March 03, 2015 | March 03, 2015 |
Grants on March 10, 2016 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | March 10, 2016 | March 10, 2016 |
Grants on June 09, 2016 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | June 09, 2016 | June 09, 2016 |
Grants on August 25, 2016 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | August 25, 2016 | August 25, 2016 |
Grants on August 24, 2017 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | August 24, 2017 | August 24, 2017 |
Grants On April Twelve Two Thousand Eighteen [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant date | April 12, 2018 | April 12, 2018 |
Restricted virtual shares [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant value | $ | $ 159.6 | |
Amount of virtual stock | 7,586,202 | 7,586,202 |
Restricted virtual shares [member] | Grants on February 25, 2014 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant value | $ | $ 30.4 | |
Amount of virtual stock | 1,570,698 | 1,570,698 |
Restricted virtual shares [member] | Grants on March 03, 2015 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant value | $ | $ 30.2 | |
Amount of virtual stock | 1,237,090 | 1,237,090 |
Restricted virtual shares [member] | Grants on March 10, 2016 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant value | $ | $ 31.1 | |
Amount of virtual stock | 1,095,720 | 1,095,720 |
Restricted virtual shares [member] | Grants on June 09, 2016 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant value | $ | $ 1.1 | |
Amount of virtual stock | 55,994 | 55,994 |
Restricted virtual shares [member] | Grants on August 25, 2016 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant value | $ | $ 1.1 | |
Amount of virtual stock | 70,978 | 70,978 |
Restricted virtual shares [member] | Grants on August 24, 2017 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant value | $ | $ 30.5 | |
Amount of virtual stock | 1,930,350 | 1,930,350 |
Restricted virtual shares [member] | Grants On April Twelve Two Thousand Eighteen [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Grant value | $ | $ 35.2 | |
Amount of virtual stock | 1,625,372 | 1,625,372 |
Virtual performance shares [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Amount of virtual stock | 2,448,179 | 2,448,179 |
Fair value of shares | R$ | R$ 51.6 | |
Virtual performance shares [member] | Grants on February 25, 2014 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Amount of virtual stock | 175,100 | 175,100 |
Fair value of shares | R$ | R$ 3.7 | |
Virtual performance shares [member] | Grants on March 03, 2015 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Amount of virtual stock | 546,024 | 546,024 |
Fair value of shares | R$ | R$ 11.5 | |
Virtual performance shares [member] | Grants on March 10, 2016 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Amount of virtual stock | 541,595 | 541,595 |
Fair value of shares | R$ | R$ 11.4 | |
Virtual performance shares [member] | Grants on June 09, 2016 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Amount of virtual stock | 32,674 | 32,674 |
Fair value of shares | R$ | R$ 0.7 | |
Virtual performance shares [member] | Grants on August 25, 2016 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Amount of virtual stock | 43,783 | 43,783 |
Fair value of shares | R$ | R$ 0.9 | |
Virtual performance shares [member] | Grants on August 24, 2017 [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Amount of virtual stock | 762,782 | 762,782 |
Fair value of shares | R$ | R$ 16.1 | |
Virtual performance shares [member] | Grants On April Twelve Two Thousand Eighteen [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Amount of virtual stock | 346,221 | 346,221 |
Fair value of shares | R$ | R$ 7.3 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings per share [abstract] | |||
Net income attributable to owners of Embraer | $ (178.2) | $ 264 | $ 178.6 |
Net income attributable to owners of Embraer | $ (178.2) | $ 264 | $ 178.6 |
Weighted average number of shares (in thousands) | 734,065 | 734,264 | 735,571 |
Basic earnings per share-U.S. dollars | $ (0.24) | $ 0.36 | $ 0.24 |
Net income attributable to owners of Embraer | $ (178.2) | $ 264 | $ 178.6 |
Net income attributable to owners of Embraer | $ (178.2) | $ 264 | $ 178.6 |
Weighted average number of shares (in thousands) | 734,065 | 734,264 | 735,571 |
Dilution for the issuance of stock options (in thousands) | 545 | 1,690 | |
Weighted average number of shares (in thousands)-diluted | 734,065 | 734,809 | 737,261 |
Diluted earnings per share-U.S. dollars | $ (0.24) | $ 0.36 | $ 0.24 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018shares | |
Earnings per share [abstract] | |
Number of anti-dilutive effect | 0 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Summary of Revenue Disaggregation (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | $ 5,071.1 | $ 5,859.4 | $ 6,203.9 |
North America [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 2,959 | 3,337.9 | 3,910.7 |
Latin America, except Brazil [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 150 | 51.6 | 210.7 |
Asia Pacific [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 432 | 859.5 | 787.2 |
Brazil [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 443 | 748.9 | 663.3 |
Europe [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 966 | 691.6 | 518.5 |
Medical benefits plan subsidiaries abroad [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 121.1 | 169.9 | 113.5 |
Commercial Aviation [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 2,358.3 | 2,771.4 | 2,916.9 |
Defense and Security [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 612.1 | 853.7 | 825.5 |
Executive Jets [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 1,104.4 | 1,280.3 | 1,553.3 |
Service and support [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 980.8 | 922.2 | 882.2 |
All Other Segments [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 15.5 | 31.8 | 26 |
Aircraft [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 3,373 | 3,873.9 | 4,313.8 |
Aircraft [member] | North America [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 2,253.8 | 2,711.5 | 3,150.6 |
Aircraft [member] | Latin America, except Brazil [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 87 | 0.2 | 164.7 |
Aircraft [member] | Asia Pacific [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 318.2 | 754 | 664.2 |
Aircraft [member] | Brazil [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 40.3 | 20 | 41.2 |
Aircraft [member] | Europe [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 644.5 | 359.3 | 250.9 |
Aircraft [member] | Medical benefits plan subsidiaries abroad [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 29.2 | 29 | 42.2 |
Aircraft [member] | Commercial Aviation [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 2,276.2 | 2,691.8 | 2,868.6 |
Aircraft [member] | Defense and Security [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 92.5 | 42.2 | |
Aircraft [member] | Executive Jets [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 997.4 | 1,175 | 1,402.9 |
Aircraft [member] | All Other Segments [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 6.9 | 7.1 | 0.1 |
Aircraft or Development Defense BU [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 267 | 651.8 | 578.1 |
Aircraft or Development Defense BU [member] | North America [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 1.9 | 38 | 112.1 |
Aircraft or Development Defense BU [member] | Latin America, except Brazil [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 0.1 | 1.3 | (1.3) |
Aircraft or Development Defense BU [member] | Asia Pacific [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 0.7 | 9.8 | 14.2 |
Aircraft or Development Defense BU [member] | Brazil [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 243.3 | 558.4 | 445.5 |
Aircraft or Development Defense BU [member] | Europe [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 12.6 | 33.7 | 3.8 |
Aircraft or Development Defense BU [member] | Medical benefits plan subsidiaries abroad [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 8.4 | 10.6 | 3.8 |
Aircraft or Development Defense BU [member] | Defense and Security [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 267 | 651.8 | 578.4 |
Aircraft or Development Defense BU [member] | All Other Segments [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | (0.3) | ||
Others [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 191.1 | 192.4 | 194.4 |
Others [member] | North America [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 66.6 | 104.1 | 157.3 |
Others [member] | Latin America, except Brazil [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 11.9 | 0.2 | 1.4 |
Others [member] | Asia Pacific [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 5.2 | 1.7 | 17.3 |
Others [member] | Brazil [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 74.7 | 11.9 | (10.6) |
Others [member] | Europe [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 8.9 | 0.3 | 12.1 |
Others [member] | Medical benefits plan subsidiaries abroad [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 23.8 | 74.1 | 16.8 |
Others [member] | Commercial Aviation [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 82.1 | 79.6 | 48.7 |
Others [member] | Defense and Security [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 2 | 7.2 | (6.2) |
Others [member] | Executive Jets [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 107 | 105.3 | 150.4 |
Others [member] | Service and support [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 0.3 | 1.5 | |
Service [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 806 | 801 | 792.8 |
Service [member] | North America [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 353.7 | 304.1 | 318.4 |
Service [member] | Latin America, except Brazil [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 42.2 | 36.9 | 35.4 |
Service [member] | Asia Pacific [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 92.3 | 75.4 | 68.6 |
Service [member] | Brazil [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 42.4 | 109.4 | 132.5 |
Service [member] | Europe [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 230.3 | 231.5 | 193.4 |
Service [member] | Medical benefits plan subsidiaries abroad [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 45.1 | 43.6 | 44.5 |
Service [member] | Commercial Aviation [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | (0.3) | ||
Service [member] | Defense and Security [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 183.2 | 177.8 | 194.4 |
Service [member] | Service and support [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 622.7 | 622.2 | 596.9 |
Service [member] | All Other Segments [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 0.1 | 1 | 1.8 |
Spare Parts [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 434 | 340.3 | 324.8 |
Spare Parts [member] | North America [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 283 | 180.2 | 172.3 |
Spare Parts [member] | Latin America, except Brazil [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 8.8 | 13 | 10.5 |
Spare Parts [member] | Asia Pacific [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 15.6 | 18.6 | 22.9 |
Spare Parts [member] | Brazil [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 42.3 | 49.2 | 54.7 |
Spare Parts [member] | Europe [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 69.7 | 66.8 | 58.3 |
Spare Parts [member] | Medical benefits plan subsidiaries abroad [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 14.6 | 12.6 | 6.2 |
Spare Parts [member] | Commercial Aviation [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | (0.1) | ||
Spare Parts [member] | Defense and Security [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 67.4 | 16.9 | 16.7 |
Spare Parts [member] | Service and support [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 358.1 | 299.7 | 283.8 |
Spare Parts [member] | All Other Segments [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | $ 8.5 | $ 23.7 | $ 24.4 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Contract balances, including contract costs (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Contract assets | $ 358 | $ 447.5 | $ 370.6 | |
Contract costs (Other assets) | 9.1 | 7.6 | 6.5 | |
Contract liabilities | 1,243.6 | 1,126.6 | 1,244.8 | |
Customer advances | 1,057.4 | 938.1 | 911.3 | |
Deferred revenue | 186.2 | 188.5 | 333.5 | |
Financial guarantee | 152.1 | 156.8 | 210.8 | $ 293.1 |
Financial guarantee [member] | ||||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||||
Financial guarantee | $ 11.6 | $ 17.1 | $ 22.7 | $ 40.1 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Loss on contract assets | $ 0 | $ 0 | |
REVENUE | 5,071.1 | 5,859.4 | $ 6,203.9 |
Impairment losses recognized for costs to obtain contracts | 0 | ||
Performance obligations partially achieved in prior year [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 13.8 | ||
Performance obligations satisfied partially [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 16,300 | ||
Performance obligations expected to be satisfied in next five years [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | 12,800 | ||
Contract Liabilities [member] | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
REVENUE | $ 785.9 | $ 652.7 | $ 678.7 |
Revenue from Contract with Cust
Revenue from Contract with Customers - Summary of Other Assets Related to Obtain Contracts (Detail) - Other assets [member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Beginning Balance | $ 7.6 | $ 6.5 | $ 9.3 |
Additions | 3.7 | (3.1) | 8.6 |
Disposals | (2.2) | 4.2 | (11.4) |
Ending Balance | 9 | 7.6 | 6.5 |
Sales Commission [member] | |||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Additions | 1.5 | (10.2) | 5.9 |
Disposals | (0.9) | 10.2 | (5.9) |
Ending Balance | 0.6 | ||
Bank Guarantees [member] | |||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Beginning Balance | 7.6 | 6.5 | 9.3 |
Additions | 1.4 | 1.5 | 2.6 |
Disposals | (0.5) | (0.4) | (5.4) |
Ending Balance | 8.4 | 7.6 | 6.5 |
Off Set Costs [member] | |||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||
Additions | 0.8 | 5.6 | 0.1 |
Disposals | $ (0.8) | $ (5.6) | $ (0.1) |
Revenue (Expenses) by Type - Su
Revenue (Expenses) by Type - Summary of Revenue Expenses (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Revenue Expenses By Type [abstract] | |||
REVENUE | $ 5,071.1 | $ 5,859.4 | $ 6,203.9 |
Cost of sales and services | (4,303.1) | (4,764.1) | (4,982) |
Administrative | (182.6) | (179.1) | (164.3) |
Selling | (304.2) | (315.9) | (353.4) |
Research | (46.1) | (49.2) | (47.6) |
Other income (expenses), net | (199.4) | (210.4) | (442.6) |
Equity in losses on associates | (0.4) | 1.2 | (0.3) |
Operating profit before financial income | 35.3 | 341.9 | 213.7 |
Revenue (expenses) by nature: | |||
Revenue from sales of goods | 4,450.5 | 5,023.6 | 5,404.7 |
Revenue from sales of services | 676.5 | 920.6 | 880.8 |
Sales deductions and tax on revenue | (55.9) | (84.8) | (81.6) |
General manufacturing costs | (4,031.1) | (4,421.4) | (4,613.6) |
Depreciation | (159.2) | (196.5) | (194.5) |
Amortization | (112.8) | (146.2) | (173.9) |
Personnel expenses | (245.8) | (245.4) | (261.6) |
Selling expenses | (42.7) | (53.8) | (83.6) |
Provision for penalties | (10.1) | (228) | |
Restructuring expenses | (6.4) | (117.3) | |
Miscellaneous | (444.2) | (437.7) | (317.7) |
Operating profit before financial income | $ 35.3 | $ 341.9 | $ 213.7 |
Other Operating Income (Expen_3
Other Operating Income (Expense), Net - Disclosure of Other Operating Income Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Other Operating Income Expense Net [abstract] | ||||
Assets devaluation | [1] | $ (99.5) | $ (109.1) | $ (77.3) |
Corporate projects | [2] | (83.4) | (33) | (21.4) |
Taxes on other outputs | (27.5) | (25.1) | (36.7) | |
Expenses system project | (19.7) | (27.7) | (16.4) | |
Provision for contingencies | (12) | (8) | (1.3) | |
Training and development | (8.7) | (10) | (10.9) | |
Flight safety standards | (4.4) | (4.8) | (4.6) | |
Aircraft maintenance and flights costs-fleet | (3.3) | (2.4) | (3.4) | |
Contractual fines | [3] | (2.9) | 6.6 | (7.7) |
Extemporaneous credits | 10.8 | 16 | ||
Financial guarantee | 9.6 | 8.5 | ||
Restructuring expenses | (6.4) | (117.3) | ||
Accounts payable for penalties | (10.1) | (228) | ||
Other sales | 8.8 | 13.3 | 11.3 | |
Recovery of expenses | 11.7 | 6.4 | 7.9 | |
Royalties | 15.3 | 11.9 | 11.9 | |
Contractual fines revenue | [4] | 35.4 | 2.4 | 24.2 |
Others | (9.2) | (34.8) | 2.6 | |
Other operating income (expense) | $ (199.4) | $ (210.4) | $ (442.6) | |
[1] | (i) Impairment losses recognized in the year, including US$ 61.3 of Lineage aircraft model (Note 17), US$ 6.0 of aircraft held in property, plant and equipment (Note 15) and US$ 32.2 of residual value devaluation related to assets attached to structured operations recorded in collateralized accounts receivable (Note 9); | |||
[2] | (ii) Refers to projects focused on system and process improvements and special projects of the Company; | |||
[3] | (iii) Refers to contractual fines to be paid to suppliers due to non-compliance with contractual clauses; | |||
[4] | Substantially fines charged to customers for cancellation of sales contracts, mainly in the Segment of Executive Aviation, in accordance with the contract terms. |
Other Operating Income (Expen_4
Other Operating Income (Expense), Net - Disclosure of Other Operating Income Expense (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Collateralised Loans On Accounts Receivable Trade [member] | |
Other operating income expense net [line items] | |
Impairment losses | $ 32.2 |
Lineage [member] | |
Other operating income expense net [line items] | |
Impairment losses | 61.3 |
Aircraft [member] | |
Other operating income expense net [line items] | |
Impairment losses | $ 2.8 |
Financial Income (Expense), N_3
Financial Income (Expense), Net - Schedule of Financial Income (Expense), Net (Detail) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financial income: | |||
Interest on cash and cash equivalents and financial investments | $ 93 | $ 127.5 | $ 201.8 |
Interest on receivables | 33.1 | 37.5 | 34.3 |
Residual value guarantee | 9.5 | ||
Taxes over financial revenue | (9) | 8 | (17) |
Other | 0.1 | 0.3 | 2.4 |
Total financial income | 117.2 | 182.8 | 221.5 |
Financial expenses: | |||
Financial restructuring costs | (0.9) | (1.5) | (0.5) |
IOF-(tax on financial transactions) | (1.4) | (3.7) | (2.9) |
Interest on taxes, social charges and contributions | (3.7) | (2.2) | (21) |
Residual value guarantee | (22.3) | (26.7) | |
Interest on loans and financing | (226.3) | (215.2) | (182.6) |
Other | (18.7) | (8.6) | (17) |
Total financial expenses | (273.3) | (231.2) | (250.7) |
Derivative instruments | (15.4) | 7.8 | (8.3) |
Financial income (expenses), net | $ (171.5) | $ (40.6) | $ (37.5) |
Foreign Exchange Gains (Losse_3
Foreign Exchange Gains (Losses), Net - Schedule of Foreign Exchange Gains (Losses), Net (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Assets: | ||||
Advances to suppliers | $ (1.3) | |||
Tax credits | $ (30.9) | (2.2) | $ 28.5 | |
Trade accounts receivable and contract assets | (24.6) | (38.8) | 14.6 | |
Cash and cash equivalents and financial investments | (80.8) | (4) | 204.2 | |
Other | (25.6) | (0.4) | 47.5 | |
Total Assets | (161.9) | (46.7) | 294.8 | |
Liabilities: | ||||
Loans and financing | 82.7 | 6 | (153.3) | |
Advances from customers | [1] | 25.1 | (46.3) | |
Provisions | 24.3 | 3.8 | (27.6) | |
Taxes and charges payable | 13 | 1.6 | (21.2) | |
Accounts payable | 17.4 | 6.8 | (18.8) | |
Suppliers | 2.7 | 0.1 | (11.7) | |
Provisions for contingencies | 3.3 | (1.3) | (3.2) | |
Deferred taxes | (1.3) | (1.4) | 0.4 | |
Other | (0.9) | (0.5) | ||
Total Liabilities | 141.2 | 40.7 | (282.2) | |
Net monetary and foreign exchange variations | (20.7) | (6) | 12.6 | |
Derivative instruments | $ 20.7 | 12.6 | (8.2) | |
Foreign exchange gain (loss), net | $ 6.6 | $ 4.4 | ||
[1] | See note to 2.2.1(c) for IFRIC 22 adoption discussions. |
Responsibilities and Commitme_3
Responsibilities and Commitments - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of finance lease and operating lease by lessee [line items] | |||
Operating leases | $ 32,100,000 | ||
Insured amount to cover substantial damage to assets and loss of earnings | 7,700,000,000 | ||
Property, plant and equipment subject to operating leases [member] | |||
Disclosure of finance lease and operating lease by lessee [line items] | |||
Operating leases | $ 7,300,000 | $ 11,000,000 | $ 15,600,000 |
Responsibilities and Commitme_4
Responsibilities and Commitments - Summary of Other Operating Leases with Payment Scheduled (Detail) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Operating lease payments | $ 32,100,000 |
2019 [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Operating lease payments | 5,400,000 |
2020 [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Operating lease payments | 4,500,000 |
2021 [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Operating lease payments | 4,000,000 |
2022 [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Operating lease payments | 3,500,000 |
Thereafter 2022 [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Operating lease payments | $ 14,700,000 |
Responsibilities and Commitme_5
Responsibilities and Commitments - Summary of Other Provisions, Contingent Liabilities and Other Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of finance lease and operating lease by lessee [abstract] | ||
Maximum financial guarantees | $ 66.6 | $ 107.7 |
Maximum residual value guarantees | 253.1 | 267.4 |
Mutually exclusive exposure | (26.9) | (29) |
Provisions and liabilities recorded | (137) | (126) |
Off-balance sheet exposure | 155.8 | 220.1 |
Estimated proceeds from financial guarantees and underlying assets | $ 177.6 | $ 266.9 |
Supplemental Cash Flow inform_3
Supplemental Cash Flow information - Summary of Payments Made During Period and Transactions Not Affecting Cash and Cash Equivalents (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Payments made during the period: | |||
Interest | $ 212.7 | $ 186.4 | $ 175 |
Income tax and social contribution | 23.3 | 28.6 | 153.9 |
Non-cash financing and investing transactions | |||
Impairment of assets | (55.2) | (58.4) | |
Government grants | (4.3) | (51.5) | |
Inventory [member] | |||
Non-cash financing and investing transactions | |||
Non-cash additions of property plant and equipment | (29.5) | (21.6) | 2.5 |
Property, plant and equipment, transfer for providing for the sale of inventory | $ (112.7) | $ (100.8) | (34.8) |
Financial guarantees [member] | |||
Non-cash financing and investing transactions | |||
Non-cash additions of property plant and equipment | 45.7 | ||
Intangible assets [member] | |||
Non-cash financing and investing transactions | |||
Non-cash additions of property plant and equipment | $ 7.5 |
Segment Information - Summary o
Segment Information - Summary of Income Data By Operating Segments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of operating segments [line items] | |||
REVENUE | $ 5,071.1 | $ 5,859.4 | $ 6,203.9 |
Cost of sales and services | (4,303.1) | (4,764.1) | (4,982) |
Gross Profit | 768 | 1,095.3 | 1,221.9 |
Financial income (expense), net | (171.5) | (40.6) | (37.5) |
Foreign exchange gain (loss), net | 6.6 | 4.4 | |
Loss before taxes on income | (136.2) | 307.9 | 180.6 |
Income tax expense | (35) | (27.9) | (0.3) |
Net income | (171.2) | 280 | 180.3 |
Operating Segment [member] | |||
Disclosure of operating segments [line items] | |||
REVENUE | 5,071.1 | 5,859.4 | 6,203.9 |
Cost of sales and services | (4,303.1) | (4,764.1) | (4,982) |
Gross Profit | $ 768 | $ 1,095.3 | $ 1,221.9 |
Gross profit % | 15.10% | 18.70% | 19.70% |
Operating income (expense) | $ (732.7) | $ (753.4) | $ (1,008.2) |
Operating profit before financial income (expense) | 35.3 | 341.9 | 213.7 |
Financial income (expense), net | (171.5) | (40.6) | (37.5) |
Foreign exchange gain (loss), net | 6.6 | 4.4 | |
Loss before taxes on income | (136.2) | 307.9 | 180.6 |
Income tax expense | (35) | (27.9) | (0.3) |
Net income | (171.2) | 280 | 180.3 |
Commercial Aviation [member] | |||
Disclosure of operating segments [line items] | |||
REVENUE | 2,358.3 | 2,771.4 | 2,916.9 |
Commercial Aviation [member] | Operating Segment [member] | |||
Disclosure of operating segments [line items] | |||
REVENUE | 2,358.3 | 2,771.4 | 2,916.9 |
Cost of sales and services | (1,976.7) | (2,178.1) | (2,325.3) |
Gross Profit | $ 381.6 | $ 593.3 | $ 591.6 |
Gross profit % | 16.20% | 21.40% | 20.30% |
Operating income (expense) | $ (229.1) | $ (230.5) | $ (210.9) |
Operating profit before financial income (expense) | 152.5 | 362.8 | 380.7 |
Defense and Security [member] | |||
Disclosure of operating segments [line items] | |||
REVENUE | 612.1 | 853.7 | 825.5 |
Defense and Security [member] | Operating Segment [member] | |||
Disclosure of operating segments [line items] | |||
REVENUE | 612.1 | 853.7 | 825.5 |
Cost of sales and services | (702.3) | (792.9) | (693.6) |
Gross Profit | $ (90.2) | $ 60.8 | $ 131.9 |
Gross profit % | (14.70%) | 7.10% | 16.00% |
Operating income (expense) | $ (93) | $ (109.5) | $ (87.6) |
Operating profit before financial income (expense) | (183.2) | (48.7) | 44.3 |
Executive Jets [member] | |||
Disclosure of operating segments [line items] | |||
REVENUE | 1,104.4 | 1,280.3 | 1,553.3 |
Executive Jets [member] | Operating Segment [member] | |||
Disclosure of operating segments [line items] | |||
REVENUE | 1,104.3 | 1,280.3 | 1,553.3 |
Cost of sales and services | (914) | (1,126.4) | (1,343.7) |
Gross Profit | $ 190.3 | $ 153.9 | $ 209.6 |
Gross profit % | 17.20% | 12.00% | 13.50% |
Operating income (expense) | $ (235) | $ (206) | $ (172.9) |
Operating profit before financial income (expense) | (44.7) | (52.1) | 36.7 |
Service and support [member] | |||
Disclosure of operating segments [line items] | |||
REVENUE | 980.8 | 922.2 | 882.2 |
Service and support [member] | Operating Segment [member] | |||
Disclosure of operating segments [line items] | |||
REVENUE | 980.8 | 922.2 | 882.2 |
Cost of sales and services | (689) | (640.3) | (601.6) |
Gross Profit | $ 291.8 | $ 281.9 | $ 280.6 |
Gross profit % | 29.80% | 30.60% | 31.80% |
Operating income (expense) | $ (168.7) | $ (177) | $ (188.5) |
Operating profit before financial income (expense) | 123.1 | 104.9 | 92.1 |
All Other Segments [member] | |||
Disclosure of operating segments [line items] | |||
REVENUE | 15.5 | 31.8 | 26 |
All Other Segments [member] | Operating Segment [member] | |||
Disclosure of operating segments [line items] | |||
REVENUE | 15.6 | 31.8 | 26 |
Cost of sales and services | (21.1) | (26.4) | (17.8) |
Gross Profit | $ (5.5) | $ 5.4 | $ 8.2 |
Gross profit % | (35.30%) | 17.00% | 31.50% |
Operating income (expense) | $ (6.9) | $ (13.9) | $ (3) |
Operating profit before financial income (expense) | (12.4) | (8.5) | 5.2 |
Total reportable Segments [member] | Operating Segment [member] | |||
Disclosure of operating segments [line items] | |||
REVENUE | 5,071.1 | 5,859.4 | 6,203.9 |
Cost of sales and services | (4,303.1) | (4,764.1) | (4,982) |
Gross Profit | $ 768 | $ 1,095.3 | $ 1,221.9 |
Gross profit % | 15.10% | 18.70% | 19.70% |
Operating income (expense) | $ (732.7) | $ (736.9) | $ (662.9) |
Operating profit before financial income (expense) | 35.3 | 358.4 | $ 559 |
Unallocated [member] | Operating Segment [member] | |||
Disclosure of operating segments [line items] | |||
Gross profit % | 0.00% | ||
Operating income (expense) | (16.5) | $ (345.3) | |
Operating profit before financial income (expense) | (16.5) | (345.3) | |
Financial income (expense), net | (171.5) | (40.6) | (37.5) |
Foreign exchange gain (loss), net | 6.6 | 4.4 | |
Income tax expense | $ (35) | $ (27.9) | $ (0.3) |
Segment Information - Summary_2
Segment Information - Summary of Income Data By Operating Segments (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disclosure of operating segments [abstract] | |
Contract estimated costs and revenue | $ 127.2 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of operating segments [line items] | |||
REVENUE | $ 5,071.1 | $ 5,859.4 | $ 6,203.9 |
Commercial Aviation [member] | |||
Disclosure of operating segments [line items] | |||
REVENUE | $ 2,358.3 | $ 2,771.4 | $ 2,916.9 |
Customer one [member] | Commercial Aviation [member] | |||
Disclosure of operating segments [line items] | |||
Percentage of entitys revenue | 17.90% | ||
REVENUE | $ 907.2 |
Segment Information - Summary_3
Segment Information - Summary of Revenue by Geographic Area (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of geographical areas [line items] | |||
REVENUE | $ 5,071.1 | $ 5,859.4 | $ 6,203.9 |
North America [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 2,959 | 3,337.9 | 3,910.7 |
Europe [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 966 | 691.6 | 518.5 |
Asia Pacific [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 432 | 859.5 | 787.2 |
Latin America, except Brazil [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 150 | 51.6 | 210.7 |
Brazil [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 443 | 748.9 | 663.3 |
Medical benefits plan subsidiaries abroad [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 121.1 | 169.9 | 113.5 |
Operating Segment [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 5,071.1 | 5,859.4 | 6,203.9 |
Operating Segment [member] | North America [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 2,959 | 3,337.9 | 3,910.7 |
Operating Segment [member] | Europe [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 966 | 691.6 | 518.5 |
Operating Segment [member] | Asia Pacific [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 432 | 859.5 | 787.2 |
Operating Segment [member] | Latin America, except Brazil [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 150 | 51.6 | 210.7 |
Operating Segment [member] | Brazil [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 443 | 748.9 | 663.3 |
Operating Segment [member] | Medical benefits plan subsidiaries abroad [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 121.1 | 169.9 | 113.5 |
Commercial Aviation [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 2,358.3 | 2,771.4 | 2,916.9 |
Commercial Aviation [member] | Operating Segment [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 2,358.3 | 2,771.4 | 2,916.9 |
Commercial Aviation [member] | Operating Segment [member] | North America [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 1,449.4 | 1,795.5 | 2,157.3 |
Commercial Aviation [member] | Operating Segment [member] | Europe [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 519.1 | 200.1 | 105.1 |
Commercial Aviation [member] | Operating Segment [member] | Asia Pacific [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 324.1 | 670.3 | 581.6 |
Commercial Aviation [member] | Operating Segment [member] | Latin America, except Brazil [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 11.9 | 0.5 | 63.9 |
Commercial Aviation [member] | Operating Segment [member] | Brazil [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 0.2 | 0.9 | (6.9) |
Commercial Aviation [member] | Operating Segment [member] | Medical benefits plan subsidiaries abroad [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 53.6 | 104.1 | 15.9 |
Defense and Security [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 612.1 | 853.7 | 825.5 |
Defense and Security [member] | Operating Segment [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 612.1 | 853.7 | 825.5 |
Defense and Security [member] | Operating Segment [member] | North America [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 145.7 | 93.3 | 166.4 |
Defense and Security [member] | Operating Segment [member] | Europe [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 122.8 | 133.5 | 99.3 |
Defense and Security [member] | Operating Segment [member] | Asia Pacific [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 1.6 | 13.7 | 22.2 |
Defense and Security [member] | Operating Segment [member] | Latin America, except Brazil [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 68.3 | 5.4 | (0.7) |
Defense and Security [member] | Operating Segment [member] | Brazil [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 258.9 | 587.1 | 479.6 |
Defense and Security [member] | Operating Segment [member] | Medical benefits plan subsidiaries abroad [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 14.8 | 20.7 | 58.7 |
Executive Jets [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 1,104.4 | 1,280.3 | 1,553.3 |
Executive Jets [member] | Operating Segment [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 1,104.3 | 1,280.3 | 1,553.3 |
Executive Jets [member] | Operating Segment [member] | North America [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 936.7 | 1,006.8 | 1,147.7 |
Executive Jets [member] | Operating Segment [member] | Europe [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 127.4 | 161.7 | 158.1 |
Executive Jets [member] | Operating Segment [member] | Asia Pacific [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 1.6 | 94.1 | 98.4 |
Executive Jets [member] | Operating Segment [member] | Latin America, except Brazil [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 22.5 | 0.6 | 102.3 |
Executive Jets [member] | Operating Segment [member] | Brazil [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 16.1 | 17.1 | 46.7 |
Executive Jets [member] | Operating Segment [member] | Medical benefits plan subsidiaries abroad [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 0.1 | ||
Service and support [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 980.8 | 922.2 | 882.2 |
Service and support [member] | Operating Segment [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 980.8 | 922.2 | 882.2 |
Service and support [member] | Operating Segment [member] | North America [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 422.2 | 421 | 416.6 |
Service and support [member] | Operating Segment [member] | Europe [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 196.7 | 196.3 | 156 |
Service and support [member] | Operating Segment [member] | Asia Pacific [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 104.7 | 81.4 | 85 |
Service and support [member] | Operating Segment [member] | Latin America, except Brazil [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 47.3 | 45.1 | 45.2 |
Service and support [member] | Operating Segment [member] | Brazil [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 157.2 | 133.3 | 140.6 |
Service and support [member] | Operating Segment [member] | Medical benefits plan subsidiaries abroad [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 52.7 | 45.1 | 38.8 |
All Other Segments [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 15.5 | 31.8 | 26 |
All Other Segments [member] | Operating Segment [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 15.6 | 31.8 | 26 |
All Other Segments [member] | Operating Segment [member] | North America [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | 5 | 21.3 | 22.7 |
All Other Segments [member] | Operating Segment [member] | Brazil [member] | |||
Disclosure of geographical areas [line items] | |||
REVENUE | $ 10.6 | $ 10.5 | $ 3.3 |
Segment Information - Summary_4
Segment Information - Summary of Assets by Operating Segment (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of geographical areas [line items] | |||||
Trade accounts receivable | $ 318 | $ 297 | |||
Property, plant and equipment | 1,964.7 | 2,104.9 | $ 2,154.2 | $ 2,154.2 | |
Intangible assets | 1,898.8 | 1,882.4 | $ 1,664.6 | $ 1,664.6 | $ 1,405.4 |
Operating Segment [member] | |||||
Disclosure of geographical areas [line items] | |||||
Trade accounts receivable | 318 | 297 | |||
Property, plant and equipment | 1,964.7 | 2,104.9 | |||
Intangible assets | 1,898.8 | 1,882.4 | |||
Total | 4,181.5 | 4,284.3 | |||
Commercial Aviation [member] | Operating Segment [member] | |||||
Disclosure of geographical areas [line items] | |||||
Trade accounts receivable | 5.8 | 2.7 | |||
Property, plant and equipment | 688.8 | 781.3 | |||
Intangible assets | 862.5 | 793.1 | |||
Total | 1,557.1 | 1,577.1 | |||
Defense and Security [member] | Operating Segment [member] | |||||
Disclosure of geographical areas [line items] | |||||
Trade accounts receivable | 111.2 | 22.9 | |||
Property, plant and equipment | 295.6 | 578.4 | |||
Intangible assets | 11 | 5.7 | |||
Total | 417.8 | 607 | |||
Executive Jets [member] | Operating Segment [member] | |||||
Disclosure of geographical areas [line items] | |||||
Trade accounts receivable | 1.3 | 6.8 | |||
Property, plant and equipment | 544 | 298.7 | |||
Intangible assets | 829 | 881.9 | |||
Total | 1,374.3 | 1,187.4 | |||
Service and support [member] | Operating Segment [member] | |||||
Disclosure of geographical areas [line items] | |||||
Trade accounts receivable | 192.2 | 256.3 | |||
Property, plant and equipment | 435.6 | 445.8 | |||
Total | 627.8 | 702.1 | |||
All Other Segments [member] | Operating Segment [member] | |||||
Disclosure of geographical areas [line items] | |||||
Trade accounts receivable | 7.5 | 8.2 | |||
Property, plant and equipment | 0.7 | 0.7 | |||
Intangible assets | 78.4 | 64.9 | |||
Total | 86.6 | 73.8 | |||
Total reportable Segments [member] | Operating Segment [member] | |||||
Disclosure of geographical areas [line items] | |||||
Trade accounts receivable | 318 | 296.9 | |||
Property, plant and equipment | 1,964.7 | 2,104.9 | |||
Intangible assets | 1,780.9 | 1,745.6 | |||
Total | 4,063.6 | 4,147.4 | |||
Unallocated [member] | Operating Segment [member] | |||||
Disclosure of geographical areas [line items] | |||||
Intangible assets | 117.9 | 136.8 | |||
Total | $ 117.9 | $ 136.8 |
Segment Information - Summary_5
Segment Information - Summary of Assets by Geographical Area (Detail) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of operating segments [line items] | |||||
Trade accounts receivable | $ 318 | $ 297 | |||
Property, plant and equipment | 1,964.7 | 2,104.9 | $ 2,154.2 | $ 2,154.2 | |
Intangible assets | 1,898.8 | 1,882.4 | $ 1,664.6 | $ 1,664.6 | $ 1,405.4 |
Operating Segment [member] | |||||
Disclosure of operating segments [line items] | |||||
Trade accounts receivable | 318 | 297 | |||
Property, plant and equipment | 1,964.7 | 2,104.9 | |||
Intangible assets | 1,898.8 | 1,882.4 | |||
Total | 4,181.5 | 4,284.3 | |||
Operating Segment [member] | North America [member] | |||||
Disclosure of operating segments [line items] | |||||
Trade accounts receivable | 83.9 | 36.8 | |||
Property, plant and equipment | 351.1 | 378 | |||
Intangible assets | 53.6 | 31.2 | |||
Total | 488.6 | 446 | |||
Operating Segment [member] | Europe [member] | |||||
Disclosure of operating segments [line items] | |||||
Trade accounts receivable | 106.4 | 45 | |||
Property, plant and equipment | 501.6 | 555.4 | |||
Intangible assets | 5.7 | 6.8 | |||
Total | 613.7 | 607.2 | |||
Operating Segment [member] | Asia Pacific [member] | |||||
Disclosure of operating segments [line items] | |||||
Trade accounts receivable | 8.8 | 3.5 | |||
Property, plant and equipment | 57.1 | 56.3 | |||
Total | 65.9 | 59.8 | |||
Operating Segment [member] | Brazil [member] | |||||
Disclosure of operating segments [line items] | |||||
Trade accounts receivable | 118.9 | 211.7 | |||
Property, plant and equipment | 1,054.9 | 1,115.2 | |||
Intangible assets | 1,839.5 | 1,844.4 | |||
Total | $ 3,013.3 | $ 3,171.3 |
Subsequent event - Additional I
Subsequent event - Additional Information (Detail) | Feb. 26, 2019 |
Master Transaction Agreement and Contribution Agreement [member] | |
Disclosure of Events After Reporting Period [line items] | |
Voting percentage to pass strategic partnership with the Boeing Company | 96.80% |